MAINBOARD-LISTED KTL Global is proposing to acquire a 51 per cent stake in Singapore e-commerce platform EBuy for about S$1.48 million, further developing its fresh produce business segment.
In a Singapore Exchange (SGX) filing on Monday night, KTL Global said it has entered a non-binding memorandum of understanding (MOU) with EBuy's sole shareholder for the proposed acquisition, with the consideration to be satisfied by the issuance of new ordinary shares within KTL Global.
EBuy distributes fresh produce to food service providers, retailers, restaurants, and hotels in Singapore, with its own fulfilment centre and delivery fleet. It also has a mobile application that serves as an online supermarket.
Following the MOU, KTL Global said it will conduct the necessary due diligence on EBuy and evaluate the feasibility of the proposed acquisition, as well as negotiate in good faith and finalise the terms and conditions of the definitive agreement.
The proposed acquisition will be subject to the approval of KTL Global's shareholders at an extraordinary general meeting to be convened.
Said KTL Global executive director Chin Teck Oon: "We see tremendous potential to build on EBuy's established distribution platform, technology capabilities and customer base, drawing on our combined experience, network and resources to further scale and capture new growth opportunities within the fresh produce and consumer market in Singapore."
This latest move follows KTL Global's completion, in June, of the acquisition of vegetable and fruits supplier and distributor Tianci Agritech for S$200,000, in its first foray into the fresh produce business.