(Dec 19): Oil and gas (O&G) engineering firm NauticAWT is diversifying into the food and beverage (F&B) business.
The group, which develops and produces Ultra High-Performance Concrete and Composites (UHPC) products, announced late on Wednesday night that it has entered into a share purchase agreement to acquire a 35% stake in Thailand-based Rich Restaurant Company for 70 million baht ($3.1 million).
Rich Restaurant operates the Chokdee Dimsum fast casual restaurant business, which serves Chinese-style dim sum and bak kut teh. The group also provides catering services through its central kitchen.
Rich Restaurant has 24 Chokdee Dimsum branches across Thailand, including 16 operated by franchisees.
The purchase consideration will be funded via proceeds from a subscription agreement announced in July.
The proposed acquisition come after NauticAWT on Nov 19 obtained shareholders’ approval for the group to diversify into the F&B business.
Dr Chirasak Chiyachantana, NauticAWT’s non-independent non-executive chairman and sole controlling shareholder with a 50.4% stake in the company, was a former director and member of the management at Rich Restaurant.
The group says Chirasak, who owns a 3.825% stake in Rich Restaurant, has abstained himself from all board deliberations, recommendation and approvals for the proposed acquisition.
For the latest half-year period ended June, NauticAWT saw its losses widen to US$443.6 million ($601.1 million), some 27% higher than losses of US$349.4 million in 1HFY2018.
1HFY2019 revenue fell 24.4% to US$3.55 billion, on lower contribution from the Renewables, Ports and Offshore, and Energy and Mining segments.
As at end June, cash and cash equivalents stood at a deficit of US$0.2 million.
Shares in NauticAWT closed flat at 0.1 cent on Wednesday before the announcement.
