Valuemax eats up Tai Eng’s entire capital

Booked value of the Bedok Central outlet is at $4.5 million.

RHB reports that Valuemax has acquired the entire issued and paid-up capital of Tai Eng Pawnbroker Pte Ltd, including the value of the loan book and inventory, as well as the market value of the HDB shop house owned by Tai Eng.

Tai Eng’s appraised property value may be about $2.5 million, and pledges of the pawnshop and inventory account for another $2.5 million, meaning Valuemax may have obtained a 10% discount, buying over the private player at 0.9x P/BV which, according to RHB, represents a good deal for Valuemax.

RHB expects Valuemax to make similar acquisitions of private players as compared to opening of new outlets.