JAKARTA (TheInsiderStories) – The Singapore food and beverage company, BreadTalk Group Ltd through its unit, BreadTalk International Pte Ltd terminated the joint venture agreement with Indonesia’s company, PT Pura Indah Berkat (PIB), the company stated on the official statement on Tuesday (12/03). It is still unclear what the cause of the termination yet.
The BreadTalk Group’s Spokesperson Shirley Tan Sey Liy said that they made the joint venture agreement on March 23, 2018. At that time, both parties agreed to build PT BTG Pura Indah Berkat Venture as the joint venture company.
However, based on the termination of the agreement, PIB would transfer its 30 percent equity interest in the joint venture company to BreadTalk Pte Ltd, a unit of BreadTalk Group. As a result, BreadTalk International and BreadTalk Pte will hold 70 percent and 30 percent interest of the company, respectively.
“After the agreement termination, BTG Pura Berkat Venture will continue to operate exclusive Toast Box in Indonesia,” she said.
Meanwhile, BreadTalk Group previously purchased all Food Junction Management (FJM) shares from its owner, Auric Pacific Group (APGL) for U$80 million. At present, FJM operates food courts and food and beverage outlets in Singapore and Malaysia.
Reportedly, 50.3 percent of APGL’s shares are owned by Lippo China Resources which 74.99 percent of its shares are controlled by Lippo Limited. Then, the remaining 49.7 percent of APGL shares are owned by Stephen Riyadi, and his son-in-law, Andy Adhiwana, through their respective investment companies. Stephen Riady is also executive chairman and controlling shareholder of the Lippo property business in Singapore, OUE.
BreadTalk acquired FJM through its subsidiary, Topwin Investment Holdings. BreadTalk will pay the acquisition of $80 million with company cash funds, including available debt facilities.
At present, FJM operates 12 food courts in Singapore and three in Malaysia. Another food court is scheduled to open next year at The Mall, Mid Valley Southkey, Johor Bahru. BreadTalk also operates a food court under the Food Republic and Food Opera brands in Singapore, Malaysia, China, Hong Kong, Taiwan, Cambodia, and Thailand. On June 30, the group ran 14 food courts in Singapore and two in Malaysia.
BreadTalk said this acquisition will provide additional revenue for the company. In addition, BreadTalk will also benefit from the synergy of the food court and the existing F&B outlet business through streamlining costs and resource sharing.
BreadTalk has nearly 1,000 retail stores in 16 markets with bakeries, restaurants, food atriums, and other major food concepts. Its portfolio consists of direct-owned brands such as BreadTalk, Toast Box, and the Food Republic, as well as partner brands such as Din Tai Fung, Nayuki, and Song Fa Bak Kut Teh.
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