YKGI announced that its wholly-owned subsidiary Yew Kee Collective has acquired the remaining 50% and 20% shares in Fine Food F&B (FFF&B) and Fine Food (Nanyang) (FFNY) respectively, from an individual Tan Hwee Meng for $330,000.
Based on FFF&B and FFNY’s unaudited financial statements for the six months ended June 30, FFF&B and FFNY’s net profit after tax was $293,000, and its net book value and net tangible assets was $782,000.
Based on FFF&B and FFNY’s unaudited financial statements for the financial year ended Dec 31, 2022, FFF&B and FFNY’s net profit after tax was $441,000. The net book value and net tangible assets attributable to the sales shares as at June 30 based on the unaudited financial statements of FFF&B and FFNY was $287,000.
the proposed acquisition will give YKGI full control over FFF&B and FFNY which is in line with the group’s business strategies and future plans. The acquisition will also allow the group to account for the full profit contribution from FFF&B and FFNY and the benefits of managing its resources efficiently.
Accordingly, the board is of the view that the proposed acquisition will bring value to shareholders of the company and is in the best interest of the company and its shareholders.
FFF&B was incorporated in Sept 2017, while FFNY in Sept 2019. Both companies’ principal activity is letting and operating of self-owned or leased food courts, coffee shops and canteens (with mainly rental income) with stalls selling cooked food and prepared drinks (including stalls at food courts and mobile food hawkers) as the secondary activity.
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Shares in YKGI closed at 10 cents on Sept 18.
