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Global Yellow Pages to buy ice cream supplier

Friday, October 2, 2015 - 22:55

Loss-making information directory firm Global Yellow Pages proposed on Friday to buy a company that handles the supply chain for the Wendy's brand of ice cream in Australia and New Zealand.

The total purchase price for Supatreats Asia has not been determined but could be about A$1.94 million initially plus a deferred sum of up to A$3 million.

Global Yellow Pages said in a Singapore Exchange filing that it may pay for the 100 per cent stake in shares, in cash or a mix.

The initial component of the total purchase consideration will be Supatreats' audited net tangible assets as at June 30, 2015, it said, which it did not disclose. It said Supatreats' unaudited book value and net asset value as at June 30 was about A$1.94 million.

On top of that, it will pay a deferred sum equal to the value of Supatreats' consolidated net profit before tax for each of the three FYs ended June 30 in 2016, 2017 and 2018. The maximum amount will be A$1 million per FY, and therefore A$3 million in total.

The group will be buying Supatreats from Asia Food Retail Group, which Global Yellow Pages said has been granted the right to use the Wendy's intellectual property rights and operate the Wendy's business in Australia and New Zealand.

Global Yellow Pages shares were not traded on Friday. They last traded on Thursday at S$0.183, up S$0.008 from Wednesday.