Nanyang New Development Limited Announces Strategic Acquisition of Majority Stake in Gold Bar Pte. Ltd.
Key Points of the Transaction
- Acquisition Overview: Nanyang New Development Limited (formerly Matex International Limited) has entered into an investment and shareholders’ agreement to subscribe for 55% of the shares in Gold Bar Pte. Ltd. (“GBPL”), making GBPL a subsidiary of the Company.
- Date of Agreement: 6 February 2026
- Investment Structure: First tranche investment of S\$110,000 for 110,000 ordinary shares, part of a total commitment of up to S\$550,000 over time, with all subscribers investing proportionally to their shareholding.
- Other Subscribers: Gong Hanxian (30%), Tony Soh Tze Shen (10%), and Wiley Partners (5%).
- GBPL Business: Gold bullion brokerage and dealership, retail sale of jewellery made from precious metals and stones. GBPL is a Registered Dealer under the Precious Stones and Precious Metals Act 2019.
- Profitability: GBPL reported profit before tax of S\$288,388 and net asset value of S\$45,630 for FY2024. 55% share equates to S\$158,613 profit before tax and S\$25,097 net asset value.
Important Shareholder Information
- Strategic Rationale: The investment aligns with the Company’s newly approved business direction to pursue strategic investments in high-growth companies and expands its presence into gold and precious metals trading.
- Board Changes at GBPL: Post-investment, the GBPL board will comprise three directors: two appointed by Nanyang and one by Gong Hanxian. Mr Soh will step down from all leadership and director roles.
- Due Diligence and Conditions: Completion is subject to satisfactory legal, commercial, and operational due diligence. All registrations, permits, and licenses must be valid, and GBPL must be free of liabilities except for net assets of S\$10,000.
- Financial Effects:
- Net Tangible Assets: Minimal change – NTA increases from S\$9,050,000 to S\$9,055,000.
- Loss Per Share: Slight increase in LPS from 0.73 cents to 0.74 cents due to estimated professional fees and profit consolidation.
- Relative Figures: The investment’s aggregate value is 6.91% of the Company’s market capitalization, and the net profit attributable to the acquired stake is 6.86% of the Group’s net loss, marking this as a discloseable transaction under SGX Catalist rules. No shareholder approval required.
- Funding: The subscription is fully funded by internal resources, not by external debt or new equity issuance.
- Relationship Disclosure: None of the subscribers or directors involved are related to the Company’s directors, controlling shareholders, or their associates. No service contracts are proposed for new director appointments.
- Inspection of Documents: The shareholders can inspect the investment agreement at the Company’s registered office for three months.
Potential Price-Sensitive Factors
- Strategic Expansion: Entry into gold trading may bring new revenue streams and higher growth, which could positively impact future earnings and share valuation.
- Financial Impact: Although the immediate NTA and LPS changes are minor, the profitable nature of GBPL and the potential for further investments up to S\$1,000,000 could meaningfully affect future consolidated results.
- Board Restructuring: Control over GBPL’s board may improve governance and alignment with Nanyang’s strategic objectives.
- Risk Factors: Completion is subject to due diligence and regulatory compliance. Any issues in these areas could delay or derail the transaction, potentially impacting the share price.
Detailed Investment Breakdown
| Subscriber |
Shares Subscribed |
Post-Completion Shares |
Shareholding (%) |
Initial Investment (S\$) |
| Nanyang New Development Limited |
110,000 |
110,000 |
55% |
110,000 |
| Gong Hanxian |
60,000 |
60,000 |
30% |
60,000 |
| Tony Soh Tze Shen |
10,000 |
20,000 |
10% |
10,000 |
| Wiley Partners |
10,000 |
10,000 |
5% |
10,000 |
Conclusion
This transaction marks a significant step for Nanyang New Development Limited as it expands into the gold and precious metals sector. The acquisition of a majority stake in a profitable gold bullion broker aligns with the Company’s new strategic direction and could pave the way for future growth and diversification. Investors should monitor subsequent tranches, board changes, and regulatory compliance as these may impact the Company’s financial performance and share price.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author has made reasonable efforts to ensure accuracy but assumes no liability for errors or omissions. Investors are advised to consult their financial advisors and review official documents before making investment decisions.
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