Boardroom buying Symphony House units for $55.4m

Mainboard-listed corporate services provider Boardroom plans to buy subsidiaries of a Malaysian company in the same line of business.

Boardroom inked a conditional share sale agreement last Friday with Symphony House Group, it said yesterday morning.

It will pay about RM164.1 million (S$55.4 million) for the Symphony Corporatehouse unit and three wholly owned subsidiaries, which offer accounting and payroll services, share registration and issuing services for primary market securities offerings, among other businesses.

Some RM123.3 million, about three-quarters of the price, will be paid in cash, funded by external borrowings.

The rest is to come from the issuance of 16 million new shares at 86.5 cents apiece.

Symphony House will become the second-largest shareholder in Boardroom after the deal, with a 7.63 per cent stake, behind Boardroom parent G.K. Goh Holdings' 87.4 per cent interest through the GKG Investment Holdings vehicle. Boardroom noted that the Malaysian operations already made up 9.8 per cent of group revenue for the year to Dec 31, 2017.

Boardroom group chief executive Kim Teo said the proposed acquisition was "a mutually beneficial partnership", while Symphony House group executive director Abdul Hamid Sheikh Mohamed called it "a win-win situation for both parties".

A version of this article appeared in the print edition of The Straits Times on July 17, 2018, with the headline 'Boardroom buying Symphony House units for $55.4m'. Print Edition | Subscribe