Ellipsiz hatches agri-food plan, to buy stake in egg farm for S$2m

ENGINEERING solutions firm Ellipsiz BIX : BIX 0%on Thursday (Nov 18) announced it is planning a foray into the agri-food industry.

In a bourse filing, Ellipsiz says it has entered into a conditional sale and purchase agreement to buy a 20 per cent stake in ISE Capital Management (ICM) for S$2 million.

ICM owns a 70 per cent interest in ISE Foods Holdings (IFH), which had signed a memorandum of understanding with the Singapore Food Agency in September for IFH to develop and operate the fourth egg farm in Singapore.

The egg farm will be developed in phases and is expected to be completed in 2026.

ICM is majority owned by Hikonobu Ise, who is also the owner of ISE Foods Inc Japan - the top egg producer in Japan and the sixth largest egg producer in the world.

Ellipsiz noted that the proposed acquisition will allow it to partner with an established player and market leader in the egg business.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

"It serves as a foothold from which there could be potential opportunities for the company to consider the agri-food sector and (increase) its investment in this business in the future," it added.

ICM's net tangible asset value and book value both stood at about S$98,000 as at Oct 31.

Ellipsiz said the purchase consideration will be paid in cash via its internal resources.

Shares of Ellipsiz closed 1.5 per cent or half a Singapore cent lower at 33.5 Singapore cents on Nov 18, before the announcement.

READ MORE

• Lum family, Ellipsiz to make mandatory offer for Lum Chang at S$0.38 per share

• Ellipsiz restructures vending business with JV exit, fresh investment