Property tycoon Koh Wee Meng in another privatisation deal with 12 cents offer for Global Dragon

Koh Wee Meng, via his entity JK Global Wealth, plans to privatise Global Dragon, which he controls. As at 10th February, he and his related parties already control 81.98% of the company, or around 559 million shares.

JK Global Assets – an entity under Koh Wee Meng’s control – holds 59.3% of shares in Global Dragon, equivalent to more than 400 million shares. As a gesture of commitment, JK Global Assets has given an irrevocable undertaking to the offeror JK Global Wealth. The second largest shareholder of the company is Tan Su Lan @ Tan Soo Lung, Koh Wee Meng’s mother.

Koh Kian Soon, appointed executive chairman of Global Dragon, is the brother-in-law of Koh Wee Meng. His Senja Close EC wife Ko Lee Meng is another substantial shareholder.

Singapore’s DBS, acting on behalf of JK Global Wealth, said the offer of 12 cents per share presents shareholders with an opportunity to realise their investment with a 14.3% premium over the last trade price of 10.5 cents, which took place before the offer. Moreover, the offer constitutes a 15.4% premium over the 1-month volume weighted average price, and a 17.6% premium over the corresponding 12-month figure.

The net asset value of Global Dragon as at 31st December 2022 was 12.18 cents, implying an offer price of 12 cents a share at a 0.99 multiple. This is a 52.3% increase compared to the 3-year historical average of 0.65 times.

At the time of the offer, two residential land developments were in progress. The first is located along Jalan Daud and the other along Woo Mon Chew Road. Both projects are likely to receive their respective TOPs (Temporary Occupation Permits) by the end of the current financial year, 30th June 2023.

Global Dragon also owns 12 units of 999-year leasehold office units in Central Business District, with an average tenancy of 87%. A hotel with 194 rooms is currently being built alongside Telok Blangah Road, likely to receive its TOP in the first half of the financial year 2024 ending December 2023.

Koh Wee Meng had privatised another development, Fragrance Group, in October 2021.

This investment offer provides shareholders with the option to realise their investments in Global Dragon with a premium. For the savvy investor, this marks an opportunity to take advantage of a lucrative offer.