BreadTalk said on Friday that its wholly owned indirect subsidiary Megabite Hong Kong entered a deal to acquire the 25 percent it didn’t already own of Food Republic Guangzhou F&B Management from Wingain Global.
“The proposed acquisition is part of our ongoing efforts to consolidate our group structure and it reflects our optimism for our food atrium business operations in Guangzhou,” BreadTalk said in a filing to SGX after the market close on Friday.
When the deal is completed, Megabite HK’s stake in Food Republic Guangzhou will rise from 75 percent to 100 percent, making it a wholly owned subsidiary of Megabite HK, it said.
The total consideration for the proposed acquisition is S$150,000, which will be paid in cash from internal resources, BreadTalk said.
It said the figure was arrived at after taking into consideration the 25 percent stake’s net book value of negative S$482,928. The price is also 1.3 times the audited profit after tax of Food Republic Guangzhou for the fiscal year ended 31 December 2017, BreadTalk said.