A wholly-owned subsidiary of gaming company GCL Global is offering to take Ban Leong TechnologiesLimited private for a consideration of 60.29 cents per share.
The subsidiary, known as EpicSoft Asia, says that the offer price is the highest price at which the ordinary shares of Ban Leong have been traded since listing in June 2005.
EpicSoft Asia has received irrevocable undertakings from Ronald Teng Woo Boon, managing director of Ban Leong and his wife Teo Su Ching, representing about 28.13% of the total number of issued shares in the capital of Ban Leong, to accept the offer.
EpicSoft's main business is in the wholesale of computer games. By combining the GCL group's gaming expertise with Ban Leong's distribution infrastructure, the acquisition will allow EpicSoft to deliver an integrated gaming ecosystem, the offer document reads.
The acquisition will enable the development of gaming peripherals, custom gaming monitors, and PC components tailored to complement GCL's gaming content.
Ban Leong's revenue was $97.5 million and $208.1 million for the 1HFY2024 and FY2024 ended September and March 2024 respectively.
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Ban Leong was incorporated in Singapore on June 18, 1993 and listed on the Mainboard of the SGX on June 23, 2005. It is involved in the wholesale and distribution of computer peripherals, accessories and other multimedia products.
It distributes a wide range of technology products, with key segments that include IT accessories, gaming, multimedia, smart technology and commercial products. The company is headquartered in Singapore with regional offices in Malaysia and Thailand.
The acquisition is also expected to facilitate the introduction of new business-to-consumer (B2C) channels for EpicSoft, with the aim of expanding its market reach and enhancing profit margins. It will also strengthen the brand positioning of GCL in the industry.
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EpicSoft says that the offer presents shareholders of Ban Leong a clean cash exit opportunity to realise their entire investment in the shares at a premium over the prevailing trading prices.
The offer price represents a premium of about 63.9%, 69.3%, 73.4% and 75.5% over the volume-weighted average price (VWAP) per share for the one, three, six, and 12 month period up to and including Apr 29. The offer price also represents a premium of 60.8% over the last transacted price per share on the last trading day.
