GS Holdings announced, on the evening of Oct 23, that it has signed a binding agreement to acquire Octopus Distribution Network, for $11.8 million.
Octopus Distribution Networks is an integrated beverage solutions group in Singapore, providing brand management, import, export, distribution, logistics and warehousing of alcoholic and non-alcoholic beverages and liquor in Singapore.
According to the release, the accretive acquisition is expected to yield significant opportunities and additional financial benefits for GS Holdings 43A .
GS Holdings recently completed a rights issue with net proceeds of $8.4 million, which will go towards future expansion and working capital.
Irwin Lim Kee Way, GS Holdings’ independent and non-executive chairman, notes that this acquisition is poised to provide the Group with “immediate access to a new customer base” and operating scale in the beverage sector of Singapore’s food and beverage (F&B) industry.
Elaine Teh, Octopus Distribution Networks’ founder and chairman, notes that this “announcement marks a major step forward in our growth ambitions within the region’s F&B industry.”
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“With the combined expertise, experience and resources, we will continue to build strong relationships with our customers and delivering value that consistently exceeds expectations. Together with GS Holdings, we are excited about accelerating the growth of our businesses and delivering results for years to come,” she adds.
As at 10.05am, units in GS Holding are trading 0.01 cents lower or 1.82% down at 0.54 cents.
