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GS Holdings forms JV to expand into F&B business
CENTRALISED dishwasher firm GS Holdings announced that it has entered into a joint venture (JV) agreement with individual Zhang Li Ying to expand into the food and beverage (F&B) business.
The JV, known as Wish Hospitality Holdings, has an existing issued and paid-up share capital of S$100 comprising 100 ordinary shares. As at the date of this announcement, the JV partner Ms Zhang is the sole shareholder of the firm.
Ms Zhang is a director and the sole shareholder of Marvel Earn Limited, one of the placees under the placement announced on Dec 17 last year. As at the date of this announcement, Marvel Earn holds 6.9 million shares, representing approximately 4.93 per cent of the issued and paid-up share capital of GS Holdings.
The JV company will principally be engaged in the procurement and management of F&B business, distribution, wholesale, trading, retail, import and export of food products and equipment, and the provision of other related products and services.
According to the JV agreement, GS Holdings will subscribe for new shares in the JV company, after which it will hold an 80 per cent stake while the JV partner will hold 20 per cent.
The consideration for the subscription shares is S$400, will be satisfied fully in cash, and will be funded by internal sources of funds.
As the JV company was only recently incorporated and has not commenced operations nor own any assets, the book value and net tangible asset value of the subscription shares are zero. No valuation of the subscription shares has been commissioned.
According to GS Holdings, the company's entry into the JV is beneficial to the group as it provides the group with a further opportunity to expand its F&B business as well as grow its operations locally and into new geographical locations at a relatively small investment amount.
"In addition, by leveraging on the strong network, experience and expertise of the JV partner, the company's entry into the Joint Venture Agreement provides a strategic platform for the company to execute its expansion plans," it said in a filing to the Singapore Exchange.