SINGAPORE – Four Singapore Exchange (SGX) companies announced privatisation offers last week, taking the number of companies that have received such offers in 2025 to at least 11.

While most of the companies received offers from major shareholders citing poor trading liquidity as the main reason for privatisation, one firm – gaming hardware distributor Ban Leong Technologies – received an offer last week from a third-party acquirer with no prior relationship to the company.

Singapore gaming company Epicsoft Asia, a wholly owned subsidiary of Nasdaq-listed gaming giant GCL Global, on April 30 made an offer to take Ban Leong private for 60.29 cents a share in cash.

The offer price represents a premium of 60.8 per cent over Ban Leong’s last transacted share price of 37.5 cents before the offer was made.

GCL Global’s chief executive Sebastian Toke told The Straits Times that the company sees strong strategic value in acquiring Ban Leong, citing its distribution strength in South-east Asia and growth in commercial and e-commerce segments as qualities not fully reflected in its share price.

“Both Epicsoft Asia and Ban Leong are born and bred Singapore firms with a strong presence in interactive entertainment software and gaming-related hardware, respectively, in Asia,” Mr Toke said.

“The acquisition will combine the strengths of both companies in ways that would enable GCL to expand its global strategy in developing and marketing differentiated gaming products.”

Epicsoft Asia has already received irrevocable undertakings to accept the offer from Ban Leong’s managing director Ronald Teng Woo Boon and his wife Teo Su Ching, who together hold 28.13 per cent of the company.

If Epicsoft Asia secures at least 90 per cent of Ban Leong’s issued shares at the close of its offer, it can compulsorily buy the remaining shares at the same offer price from shareholders who have not accepted the offer.

Shares of Ban Leong jumped by more than 57 per cent to close the week at 59 cents, their highest level since the company listed in June 2005.

Valuation gap

The proposed acquisition of Ban Leong underscores the disconnect between public market valuations on SGX and the underlying strengths of many listed companies. Despite demonstrating strong performance and growth potential, firms like Ban Leong remain undervalued, largely due to low trading liquidity and limited market visibility.

This valuation gap is attracting buyers like GCL Global who are willing to pay a premium for quality assets that the market has overlooked. It also raises questions about how SGX can better support fairer valuations and stem the pace of delistings, which has been accelerating.

In 2025 so far, at least nine companies have announced potential delistings. They are: SLB Development, PEC, Econ Healthcare, Sinarmas Land, ICP, Amara Holdings, Procurri Corp, Aoxin Q&M and Ban Leong.