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GYP Properties to sell Global Food Retail Group for S$4.69m
GYP Properties announced after trading hours on Wednesday that it will be selling the entire stake of its indirect wholly-owned subsidiary, Global Food Retail Group, for S$4.69 million.
Global Food Retail Group and its subsidiaries own the intellectual property rights to the Wendy's Milk Bar brand and business, a brand of ice cream and treats, and licences the use of the brand in Australia. It also owns the master franchisor rights for Wendy's in Australia and operates the supply chain business of the Wendy's brand in Australia.
The sum of S$4.69 million took into consideration the value of the ongoing business, the net tangible liability value of the sale shares of S$9.2 million, and the aggregate net profit before income tax, minority interest and extraordinary items attributable to the sale company for FY2018.
The proposed disposal is part of the company's strategy to focus on its core business of property development and management, property-related investments, and holding of investments in property-related assets.
It would also free up the group's resources and capital to further develop and grow its core property business. The company intends to utilise the net proceeds for general working capital purposes of the group, ongoing development projects, and/or investment opportunities in the property market.
Based on the consideration and disregarding transaction costs, the gain on the proposed disposal and the excess of the consideration over book value of the sale shares is approximately S$1.5 million and S$2 million respectively. The company does not expect the transaction costs to exceed approximately S$50,000.