Singapore-style coffee shop operator Kimly said late on Thursday that it would retroactively cancel its July acquisition of beverage distributor Asian Story Corp. (ASC) for S$16 million and potential earn-out payments.
Last week, Kimly received notice from Pokka Corp. (Singapore) that it intended to terminate its manufacturing agreement with ASC with six months’ notice, the filing to SGX late on Thursday said.
After discussing the potential impact with Wang Chia Ye, who sold ASC to Kimly, the company decided to enter a deed of rescission over the transaction, which essentially cancels the deal as if it had never existed, the filing said.
Under the rescission, Wang Chia Ye has repaid S$12 million to Kimly, with the balance to be repaid over three years, the filing said.
ASC markets and sells nine different drinks under its “Asian Story” brand, including Winter Melon Tea and Bandung, and also sells bottled water under the “Simply Water” brand.