Maxi-Cash Group’s wholly owned subsidiary Maxi-Cash Property has entered a deal to acquire four properties from property investor 8G Investment for S$23.7 million in cash, the pawnshop operator said in a filing to SGX Tuesday.
“As the properties are currently utilised (or have the potential to be utilised) for the purposes of the Maxi-Cash Group’s existing pawnbroking and retail businesses, the proposed acquisition will enable the Maxi-Cash Group to own the properties on which such businesses are carried out,” the company said.
“Accordingly, these businesses will not be subject to the periodic renewal of leases that could affect the operation and costs of such businesses (for example, in the event that the landlord elects not to renew such leases, or to increase the rent payable for such leases),” Maxi-Cash added.
The four properties are located at: Block 165 Bukit Merah Central #01-3661, Block 101 Yishun Avenue 5 #01-95, Block 702 Ang Mo Kio Avenue 8 #01-2515 and 40 Changi Road, the filing said.
The properties’ estimated net profit before income tax for the first half of this year was S$69,000, the filing said.
Maxi-Cash said it would fund the deal via existing cash and bank borrowings.
The shareholders of 8G Investment are Koh Wee Seng (KWS), Tan Su Lan @ Tan Soo Lung, who is KWS’s mother, and Lim Kwee Hua, who is KWS’s spouse, the filing said.
KWS is a director and controlling shareholder of Maxi-Cash, with a 79.58 percent stake, making the deal an interested person transaction, the company said.
The deal is conditional upon shareholders’ approval at an extraordinary general meeting and the consent of the Housing Development Board (HDB) for three of the properties, Maxi-Cash said.
