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BreadTalk's unit partners Japanese trader in F&B JV

BREADTALK Group Limited has, through its wholly-owned subsidiary, Together Inc Pte Ltd, established a joint venture agreement on Friday with Shinmei Co Ltd.

On Friday, a joint press release by BreadTalk and Shinmei said that the new agreement will form BTG-Shinmei Venture Pte Ltd, which will be 66 per cent and 34 per cent owned by Together Inc and Shinmei respectively, with trading and food & beverage being the two key areas of strategic partnership under the JV.

The proposed collaboration marks Shinmei's first foray into the Singapore market.

"Leveraging on Shinmei's 115 years of operating history and track record in the trading and wholesale of soft commodities and food products, BTG-Shinmei will oversee the sourcing, procurement and supply of key raw materials and ingredients, including but not limited to, flour, rice, sugar, dairy, seafood and product packaging to support the F&B operations of BreadTalk's group of companies globally," the two firms said.

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The JV company may also potentially source and supply to third parties in future.

The investment is not expected to have any material impact on the earnings per share and net tangible assets of the company and the BreadTalk Group for the financial year ending Dec 31, 2017.

BreadTalk closed one Singapore cent higher at S$1.61 on Friday.