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No Signboard to acquire remaining 20% stake in Danish Breweries for S$400,000
NO Signboard Holdings announced that it has acquired the remaining 20 per cent stake in Danish Breweries for S$400,000.
The acquisition will be spread out across 10 separate monthly instalments of S$40,000, funded by the group’s IPO proceeds and is expected to be completed on June 19, 2018.
Danish Breweries owns its signature Draft Denmark brand as well as manufactures and distributes Draft Denmark lagers in Singapore. Established since 2014, Draft Denmark is well distributed across around 300 outlets in Singapore comprising mainly pubs, coffee shops and clubs. Draft Denmark sells approximately 80,000 barrels or 2.4 million litres of lager annually in Singapore.
Sam Lim, executive chairman and chief executive officer of No Signboard said that acquiring the remaining stake would allow the group to fully capitalise on the potential of the beer business and give it full control in the decision making of its day to day operations.
“We would immediately devote our full attention into reducing the operational costs of the beer business especially on the marketing and distribution expenses. We firmly believe that through our efforts to streamline the beer business and to implement more stringent cost control policies, our beer business can boost our group’s earnings going forward.” he added.
Separately, No Signboard has also entered into a franchise agreement to develop and operate Little Sheep restaurant concept in Singapore. Little Sheep is a well-known hot pot restaurant in China.
The agreement will commence from 18 June 2018, for a period of 10 years. Under the terms of the agreement, No Signboard is targeting to launch one restaurant per year under the Little Sheep brand name and concept in Singapore within the first five years.
Established since 1999 with origins from Inner Mongolia, Little Sheep has over 280 outlets across China and the international markets including the United States, Canada and Japan. Of these 280 outlets, 270 of them are franchised.