Koh Wee Meng, CEO of JK Global Wealth, intends to privatise Global Dragon, a company he controls, with an offer of 12 cents per share. Back in October 2021, Koh Wee Meng had already privatised Fragrance Group, another company that he holds. As of Feb 10, Koh, and the related parties, control 81.98% of Global Dragon, amounting to 559.06 million shares.
Koh Wee Meng, via JK Global Assets, holds a deemed stake of 59.3%, or over 400 million shares. As per the offer document posted on Feb 10, JK Global Assets has given an irrevocable undertaking to the offeror, JK Global Wealth itself.
Tan Su Lan @ Tan Soo Lung, Koh Wee Meng’s mother, is the second largest shareholder of Global Dragon. Koh Kian Soo, Global Dragon’s Executive Director, and Ko Lee Meng, wife of Koh Kian Soo, are further substantial shareholders of Global Dragon.
DBS, acting on behalf of JK Global Wealth, has declared that the offer price of 12 cents per share gives investors the opportunity to benefit from a 14.3% premium over the company’s last trading price of 10.5 cents on Feb 7.
Moreover, the offer of 12 cents per share is a 15.4% premium over the 1-month volume weighted average price, and a 17.6% higher than the corresponding 12-month figure. Champions Way Condo As at Dec 31 2021, Global Dragon’s net asset value was 12.18 cents, giving a 0.99 times multiple for the share offer price. This figure is 52.3% higher than Global Dragon’s 3-year historical average of 0.65 times.
Global Dragon currently houses two ongoing property developments. Both are residential, located at Jalan Daud and Woo Mon Chew Road, and are estimated to receive their respective TOPs by the end of FY2023 ending June 30 2023.
In addition, Global Dragon also has a portfolio of 12 units of 999-year leasehold units in the CBD. The units show an average tenancy of 87%. Finally, a 194-room hotel along Telok Blangah Road is expected to receive its TOP in 1H FY2024, ending Dec 2023.