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LifeBrandz unit not acquiring Ramen Champion
THE proposed acquisition of restaurant operator Ramen Champion between a wholly owned subsidiary of LifeBrandz and majority shareholder Koki Matsuda and Kanezin Japan Singapore has been called off.
On Thursday, LifeBrandz, a lifestyle group, said that LB F&B and the two parties have mutually agreed not to proceed with the acquisition.
A non-binding memorandum of understanding (MOU) has been terminated.
"The termination of the MOU will not have any impact on the net tangible assets per share or earnings per share of the group for the current financial year ending July 31, 2018," LifeBrandz said.
On March 12, the company announced in a bourse filing that it was planning to acquire 3.95 million ordinary shares of Ramen Champion for up to S$4 million.
As at March 9, the date when the MOU was signed, Ramen Champion had an issued and paid-up share capital of S$3.95 million.
The potential acquisition would have been financed by a director's loan from Hiroyuki Saito, the executive chairman and CEO of LifeBrandz. Mr Saito would have entered into a loan agreement with LifeBrandz to provide the required financing for the proposed deal.
On Wednesday, LifeBrandz separately announced that it will be starting a new food and beverage sushi restaurant business, led by sushi chef Hatch Hashida under the Cloud Eight company.
It added that it will be opening new sushi restaurants in Singapore, San Francisco and Tokyo in the "near future".
LifeBrandz last traded at S$0.012 on June 18.