Company: GCL
Filing Date: 2025-04-30
Form Type: 424B3
Source: 0001213900-25-037646
Chunk: 8

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-30
Form: 424B3
Chunk 8
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| (c) | Mr Chim Suan Kit Mark (Independent Non-Executive Director); and |

| (d) | Ms Ng Mei Ling Doreen (Independent Non-Executive Director). |

| 6. | RATIONALE FOR THE OFFER |

| 6.1 | Acquisition to realise potential synergies |

By combining the GCL group’s
gaming expertise with the Company’s established distribution infrastructure, the acquisition enhances the Offeror’s ability
to deliver an integrated gaming ecosystem. The acquisition will enable the development of gaming peripherals, custom gaming monitors,
and PC components tailored to complement GCL’s gaming content. The acquisition is also expected to facilitate the introduction of
new business-to-consumer (B2C) channels for the Company, with the aim of expanding its market reach and enhancing profit margins. Additionally,
the introduction of gaming laptops and consoles pre-installed with GCL titles will strengthen GCL’s brand positioning in the
industry.

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The Company’s regional footprint
will be reinforced by GCL’s presence across Asian markets, creating new scalability opportunities. The acquisition is
expected to diversify revenue streams by leveraging sales from hardware, licensing, and co-branded products while optimizing operational efficiencies
through shared marketing and procurement strategies. The Company’s expertise in technology distribution perfectly complements GCL's
strategic goals in delivering next-generation gaming experiences.

| 6.2 | Opportunity for Shareholders to Exist Amidst Heightened Global Trade Tensions and Geopolitical Risks |

The Company faces a challenging macroeconomic
and operating environment in Singapore and its key regional markets, with a range of external risks impacting its business outlook:

| 6.2.1 | Trade Protectionism and Tariff Pressures |

The global shift towards protectionist
trade policies and the reconfiguration of international trade agreements have resulted in the imposition of tariffs and non-tariff barriers.
Such developments increase procurement and operational costs for businesses, including technology distributors like the Company, thereby
placing pressure on profit margins and limiting growth prospects.

In addition, persistent uncertainty around
trade policies and economic relations between major economies could erode consumer and business confidence, leading to more cautious discretionary
spending, including reduced purchases of non-essential technology products.

| 6.2.2 | Geopolitical Tensions and Global Economic Volatility |

Ongoing geopolitical tensions, including
diplomatic conflicts, regulatory uncertainties, and shifting international alliances, continue to fuel market volatility and undermine
investor sentiment