SINGAPORE (Feb 15): GKE Corporation, which has interests in logistics and building materials, announced that “some of its substantial shareholders” have been approached “to explore a potential acquisition” of shares in the company, said the company’s CEO Neo Cheow Hui in an announcement after the market closed on Wednesday.
Over the past month, GKE shares have been climbing steadily. From 10.6 cents on Jan 24, it has nearly doubled to 19 cents on Tuesday. It closed on Wednesday at 18.9 cents, down 0.1 cent. The company is now valued at nearly $130 million. SGX has yet to publicly query the company on its unusual trading pattern.
“The Company further understands that the discussion is at a preliminary stage and there is no assurance that any definitive agreement or transaction will materialise,” says Neo.
“Taking into consideration the above, the Company wishes to inform that it has not received any formal nor written indications from the substantial shareholders on the matter,” he adds.
The company’s single largest shareholder is chairman Chen Yong Hua, a Chinese national with interests in property, logistics and printing. He owns 9.83%. Another significant shareholder is Spencer Tuppani, who recently took on a 7.05% stake in the company after selling his company, TNS Ocean Lines, a port services provider, to GKE, last November.
The Edge Singapore understands that the potential buyer is a state owned Chinese company, joining the list of Chinese capital acquiring assets here in Singapore.