Logistics and building materials firm GKE Corp is seeking shareholders' approval to diversify into a new business of distributing mobile handsets, and will do so by buying over the distribution business of an existing player.
Together with a partner, GKE will then run the distribution business via their venture, where GKE will hold 60% and the partner the remaining 40%.
According to GKE in an EGM circular, the joint venture company "intends" to work with one of the key telcos here to set up a chain of retail shops for this. It has already identified certain locations and is in talks with the telco, which was not named.
GKE says the new handset distribution is meant to complement its current business so long as it "remains viable". The company says this move will give it "better prospects of profitability and ensure long term growth."
While this new distribution business will start in Singapore, GKE says it has regional ambitions "if and when" suitable opportunities come about. It will also be open to distributing other products and not just handsets.
While GKE continues to run its warehouses, it has previously expanded into the production of ready-mixed concrete in China.
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On Jan 2, the company announced it is booking a one-off disposal gain from the divestment of rights to a limestone mine in China, which it bought back in May 2019, GKE paid RMB5.05 million for the rights to mine for 9.5 years.
Gains from this sale, plus improvements in other areas will lead to a "significant" increase for its 1HFY2025 earnings for the period ended November 2024, the company says.
GKE expects to report its 1HFY2025 results on or before Jan 14. The EGM will be held on Jan 27.
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GKE shares closed at 9.8 cents on Jan 9, up 16.67%.
