Kimly units to acquire coffeeshop, industrial canteen assets for total $1.5 mil

By Jude Chan / The Edge Markets | June 14, 2017 7:40 PM SGT
Coffeeshop operator Kimly Group announced Wednesday that two of its subsidiaries have entered into separate agreements for acquisitions of a coffeeshop and an industrial canteen for a total of $1.5 million.
First, indirect wholly-owned subsidiary Yong Yun has entered into a business transfer agreement with Tan Chong Sing for the operation and management of a coffee shop located at Blk 631 Bedok Reservoir Road for $850,001.
This includes the acquisition of its lease, and the sub-leases of the food stalls within the coffee shop.
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Following the transaction, Tan, who has more than 16 years of experience in the food and beverage industry, will join Kimly as a director of project management.
Next, indirect wholly-owned subsidiary CDP Kimly entered into a business transfer agreement with Ruiyi F&B Management for the operation and management of an industrial canteen located at 21 Woodlands Close for $650,001.
This includes the acquisition of its lease, and the sub-leases of the food stalls within the industrial canteen.
In a filing to SGX, Kimly says the proposed acquisitions are in line with the group’s strategy to establish new food outlets and expand its business through acquisitions, joint ventures, or strategic alliances.
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It adds that the proposed acquisitions are not expected to have any material impact on its net tangible assets and earnings per share for the financial year ending Sept 30, 2017.
Shares of Kimly closed 1.5 cents lower at 39.5 cents on Wednesday.
This article first appeared on The Edge Markets