800 Super Holdings proposes to acquire Iwash Laundry (Senoko)

WASTE management company 800 Super Holdings is going into the laundry business.

Announcing this in a Singapore Exchange filing on Tuesday, 800 Super Holdings said it has entered into a call and put option agreement, through its wholly-owned subsidiary Wizwash, with Fairlady Jewellers, Lee Yok Sim, Chua Yun Chean and Tan Choon Huat on Tuesday, in which an option to buy the entire shares in Iwash Laundry (Senoko) was granted.

It said that should either the call option or put option be exercised, the aggregate consideration payable for the sale shares would be S$4.999 million cash, and upon completion of the proposed acquisition, Iwash Laundry will become an indirect wholly-owned subsidiary of 800 Super Holdings.

According to the announcement, the aggregate consideration will be paid in two tranches - the first of S$4.499 million is payable on completion and the second of almost S$500,000 payable a year from completion.

The consideration was arrived "pursuant to arm's length negotiations between the parties, based on a willing-buyer, willing-seller basis", after taking into consideration the prevailing market conditions, the audited net tangible assets of Iwash Laundry of about S$1.19 million, as at Dec 31 2016, and the prevailing market value of the property.

Iwash Laundry is a company incorporated with limited liability under the laws of the Singapore on April 27, 2011, and has an issued and paid-up share capital of S$1.68 million comprising 1.27 million ordinary shares.

It is principally in the business of laundry and dry cleaning services, except coin laundries, and its principal asset is a leasehold property with an estimated gross floor area of about 2,600 square metres, located at 80 Senoko Drive.