AEI Corp renamed Ascent Bridge, diversifies into alcoholic beverages business

AEI CORPORATION has changed its name to Ascent Bridge Limited AWG : AWG 0% , and is now eyeing the growth of its alcoholic beverages business after completing the acquisition of MTBL Global for a price tag of about S$17 million.

The stock will, however, remain on the Singapore Exchange watchlist, although the company's board said it intends to "take active steps" to satisfy the necessary criteria to exit in due course.

MTBL is primarily engaged in the promotion, sale and distribution of Moutai Bulao 125ml liquor products outside mainland China. This liquor is used for toasts at Chinese state banquets.

MTBL owns the exclusive distributor rights to market and sell these Moutai Bulao products worldwide, but this excludes mainland China. The company distributes the product wholesale to liquor stores, and also develops and manages liquor distribution and sales channels.

The group has also been stepping up efforts to expand its presence overseas by signing agreements to appoint local distributors of Moutai Bulao in countries like Singapore, Malaysia, Cambodia, and also in Hong Kong.

Sun Quan, chief executive of Ascent Bridge, said: "Chinese Baijiu is experiencing growing demand in overseas market(s) and there is huge potential for growth. Our brand identity puts us in an advantageous position to benefit from this positive trend.

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"Going forward, we are driven to grow the new business and make it a success to deliver sustainable long-term shareholder value."

Looking ahead, MTBL intends to tap its smart vending machines to sell its products in food and beverage establishments to further penetrate the Baijiu market.

The company also has plans to implement a smart logistics supply chain to automatically order supplies when stocks run low based on real-time sales updates. MTBL can also streamline and enhance its liquor distribution channels worldwide by using this digital platform to optimise its shipping, freight allocation and central order planning.

As part of its expansion plans, MTBL is looking to establish liquor distribution channels in as many as 39 cities over the next 5 years and is currently building distribution channels in Singapore, Hong Kong, Macau, Saipan, Laos, Cambodia and the US.

Shares of Ascent Bridge closed flat at S$1.00 on Wednesday (Mar 16).