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SINGAPORE - GCL Global Holdings Ltd (NASDAQ:GCL), currently trading at $2.43 and showing a significant 78.8% decline over the past six months according to InvestingPro data, has acquired more than 90% of Ban Leong Technologies Limited shares, enabling it to proceed with compulsory acquisition of the remaining stake, according to a press release statement issued Thursday.
The company’s indirect subsidiary now owns, controls, or has agreed to acquire 100,167,499 shares, representing approximately 92.92% of Ban Leong’s total issued shares. This level of ownership entitles GCL to exercise its right to compulsorily acquire all remaining shares not tendered in the offer. GCL, with current revenue of $112.35 million and a market capitalization of $262 million, is pursuing this acquisition despite operating with relatively weak gross profit margins of 12.9%.
GCL plans to send documentation to shareholders who have not accepted the offer, along with the prescribed notice under Singapore’s Companies Act 1967. Following the compulsory acquisition, Ban Leong will be delisted from the Singapore Stock Exchange.
In the original offer document dated May 21, 2025, GCL indicated the acquisition could create synergies through economies of scale and improved operational efficiencies. The company stated it would explore opportunities to align with Ban Leong’s marketing and procurement strategies in consumer electronics and gaming hardware.
Ban Leong Technologies, incorporated in 1993 and listed on Singapore’s Main Board in 2005, distributes computer peripherals, accessories, and multimedia products across Singapore, Malaysia, and Thailand.
GCL Global Holdings describes itself as a company that introduces Asian-developed intellectual property to global audiences across various gaming platforms.
The acquisition announcement follows GCL’s offer to acquire Ban Leong shares, which has now reached the threshold allowing for compulsory acquisition of remaining shares under Singapore regulations.
In other recent news, GCL Global Holdings Ltd has secured a convertible note financing facility worth up to $45.5 million. This agreement includes an initial issuance of $2.9 million in senior unsecured convertible notes, with the potential for additional notes totaling $42.6 million, contingent upon certain conditions. The notes carry an annual interest rate of 6% and mature in three years, providing GCL Global with capital to enhance its strategic growth initiatives. Meanwhile, Colabor Group Inc. announced that its Senior Vice-President and Chief Financial Officer, Pierre Blanchette, will leave the company in July 2025. The company will begin searching for a replacement for the CFO position. This executive transition is part of Colabor’s normal processes, as stated by the company’s President and CEO, Louis Frenette. These developments highlight significant changes and strategic moves within both GCL Global Holdings and Colabor Group.
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