Smartworks Coworking announces cash acquisition of WorkStudio Spaces, Singapore

What Smartworks announced

On 25 June 2026, Smartworks Coworking Spaces Limited (formerly Smartworks Coworking Spaces Private Limited) filed an intimation with the NSE and BSE under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. The filing disclosed that the Audit Committee and the Board of Directors approved the proposed acquisition of WorkStudio Spaces Pte. Ltd., Singapore (the “Target”) by Smartworks Space Pte. Ltd., a wholly‑owned subsidiary of Smartworks (the “Subsidiary”).

The acquisition will make WorkStudio a step‑down subsidiary of Smartworks. The transaction is expected to close in July 2026, subject to the usual approvals and execution of definitive documents.

"The acquisition aims to strengthen Smartworks’ presence in Singapore by expanding its coworking and flex‑space portfolio in a key international business hub." – Smartworks filing

Details of the acquisition

• Target: WorkStudio Spaces Pte. Ltd., a Singapore‑based flex‑space provider.
• Acquirer: Smartworks Space Pte. Ltd., wholly‑owned subsidiary of Smartworks Coworking Spaces Limited.
• Ownership post‑transaction: 100% of WorkStudio will be held by the Subsidiary, making it a step‑down subsidiary of the listed entity.
• Consideration: Cash payment (exact amount not disclosed; further negotiation and documentation pending).
• Related‑party nature: The filing notes that an immediate relative of one of Smartworks’ directors (who is also a promoter) holds an interest in the holding company of the Target. The transaction is being carried out on an arm‑length basis.
• Regulatory approvals: None required.
• Timeline: Expected completion within July 2026, contingent on requisite approvals and execution of transaction documents.

Transaction terms and structure

The acquisition is structured as a cash deal where the Subsidiary will purchase the entire shareholding of WorkStudio. While the filing does not disclose the purchase price, it confirms that the deal will be settled in cash and that the exact cost will be finalised during the negotiation phase.

Key contractual points extracted from Annexure‑A include:

1. Arm‑length basis – despite the related‑party aspect, the parties assert that the transaction is being executed at market terms.
2. 100% share acquisition – the Subsidiary will acquire all outstanding shares, thereby gaining full control.
3. No governmental or regulatory consents – the acquisition does not trigger any statutory approvals, simplifying the closing process.
4. Completion window – the parties target July 2026 for closing, allowing a short post‑approval period for document execution.

Strategic rationale

Smartworks’ management highlighted three primary reasons for the acquisition:

• Geographic expansion: Upon completion, Smartworks will operate four centres in Singapore, covering approximately 76,000 sq ft. This more than doubles the company’s Singapore footprint accrued over the previous two years.
• Enterprise client focus: A larger footprint enhances Smartworks’ ability to serve enterprise customers seeking flexible office solutions in a major Asian business hub.
• Long‑term growth: Strengthening the Singapore portfolio aligns with Smartworks’ broader strategy to grow its presence in Asia and capture demand for premium flex‑space offerings.

The acquisition does not represent a diversification away from Smartworks’ core business; WorkStudio operates in the same flex‑space industry, ensuring strategic fit.

Key facts at a glance

Why this matters for investors

The filing provides investors with a clear view of a material expansion move that will affect the company’s asset base and geographic exposure. Key implications include:

• Potential dilution – The transaction is cash‑based, so no new shares are issued, meaning there is no immediate dilution of existing shareholders.
• Capital allocation – Deploying cash for an acquisition signals that the board believes the target offers a favourable risk‑adjusted return relative to alternative uses of cash.
• Visibility of order‑book – Adding four Singapore centres expands the company’s addressable market and may improve future revenue visibility, especially from enterprise clients.
• Governance – The related‑party nature is disclosed, and the board asserts arm‑length pricing, which is relevant for assessing governance risk.
• Pending approvals – While no statutory approvals are needed, the transaction still requires standard board and possibly shareholder consents before closing.

Conclusion

Smartworks Coworking Spaces Limited has secured board approval to acquire 100% of WorkStudio Spaces Pte. Ltd. on a cash basis, with the deal expected to close in July 2026. The acquisition will more than double Smartworks’ Singapore presence, adding roughly 76,000 sq ft of flex‑space capacity across four centres. The transaction is a related‑party deal executed at arm’s length, requires no external regulatory clearances, and will be funded through cash, leaving the company’s share capital unchanged. Investors should monitor subsequent disclosures for final pricing, shareholder approval status, and any post‑closing integration updates.