Hanwell Holdings acquires 80 per cent stake in CKH Food Trading and 123 Mart for S$3.3m

MANUFACTURER and distributor of fast-moving consumer goods Hanwell Holdings announced that it has acquired an 80 per cent stake in both CKH Food Trading and 123 Mart for a total of S$3.3 million.

In a bourse filing on Friday (Dec 31), the company said that the shares are being acquired from founder Chua Kheng Hwee and the acquisition will be effective from Jan 1, 2022. Chua will continue to hold the remaining 20 per cent of total issued shares in CKH Food Trading and 123 Mart.

CKH Food Trading is a food distributor supplying food products to almost 1,500 food and beverage establishments in Singapore, while 123 mart is a grocery minimart.

Hanwell Holdings chief executive officer Henry Chu said that the acquisition will enable the company to tap into CKH Food Trading's network and cross-sell its products. He also added that the acquisition will allow Hanwell to build on its base of products and assets in different business segments.

"Putting our logistical capabilities and operational strengths together, we will be able to achieve greater economies of scale and accelerate our growth in these segments," he added.

Hanwell's shares closed up 3.7 per cent, or S$0.015 to close at S$0.42 on Friday, before the announcements as made.