BreadTalk to buy food court operator FoodJunction for $80m
It will be paid in cash.
BreadTalk has entered into a sale-and-purchase agreement to acquire food court operator FoodJunction for $80m, an announcement revealed.
In its filing with the Singapore Exchange (SGX), the bakery brand’s wholly-owned subsidiary Topwin Investment plans to buy more than 1.48 million ordinary shares in FoodJunction.
The consideration price will be paid in cash and will be funded through the BreadTalk’s internal resources and debt facilities.
The proposed acquisition will reportedly provide BreadTalk additional revenue streams as well as allow both the bakery chain and the food-court operator to streamline costs and share resources.
FoodJunction, which operates 12 food and beverage courts in Singapore and three in Malaysia, has a net asset value of approximately $12.34m as of 30 June. Auric Pacific Group Limited (APGL) owns 98.1% of the company.
Meanwhile, BreadTalk has close to 1,000 retail stores in 16 countries and operates food courts under the Food Republic and Food Opera brands in Singapore, Malaysia, China, Hong Kong, Taiwan, Cambodia and Thailand. As at 30 June, it operates 14 food courts in Singapore and two food courts in Malaysia.
