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CATERER Neo Group has bought 55 per cent of U-Market Place Enterprise, the company set up in 2008 to make rice dumplings under the "Joo Chiat Kim Choo" brand. It has also bought 55 per cent of dormant company Joo Chiat Kim Choo.
Joo Chiat Kim Choo is a relatively recent business.
Kim Choo Kueh Chang, the Joo Chiat institution known for its rice dumplings, has said that it is not related to Joo Chiat Kim Choo. Kim Choo Kueh Chang was named after matriarch Lee Kim Choo, who started selling dumplings in the 1960s in the Joo Chiat area.
Neo Group said that its proposed acquisitions of U-Market and Joo Chiat Kim Choo are a "strategic advancement" into its supply chain that will complement its existing catering and manufacturing businesses.
Neo Group bought 55 per cent of the business for S$1.925 million in a cash and shares deal that valued Joo Chiat Kim Choo at S$3.5 million. Shareholders Oh Beng Soon and Oh Geok Cheng will hold 30 and 15 per cent after the deal, down from 70 and 30 per cent respectively.
Based on the audited financial statements of U-Market and the unaudited financial statements of Joo Chiat Kim Choo for the financial year ended Sept 30, 2015, the business made a profit before tax of S$251,000. Its net tangible asset value is S$847,000.
The company has branched out into ready-to-eat food and has six outlets selling barbecued products and various meat-related items.
Neo Group last traded at S$0.63.