Sim Leisure receives letter of intent from potential strategic shareholder

CATALIST-LISTED Sim Leisure Group has received a letter of intent from Tropika Kiara to become a strategic shareholder.

The theme park developer and operator based in Penang, Malaysia, said in a regulatory filing on Monday that a major food and beverage player Tropika Kiara indicated that it sees potential synergies between its business operations and Sim Leisure's.

Subject to definitive agreement(s) to be executed, the potential transaction would involve the subscription of new ordinary shares in Sim Leisure by Tropika Kiara, and the acquisition by Tropika Kiara of part of the shareholding stake of the theme park operator's controlling shareholder Sim Choo Kheng.

Mr Sim, Sim Leisure's executive director and chief executive officer, said: "As we continue to execute aggressive growth strategies both in Malaysia and overseas, we remain on the lookout and welcome potential strategic alliances which may give us access to new markets, new customers as well as new business opportunities. The board will consider the potential merits of this letter of intent as we continue to strive towards our long-term goal of enhancing shareholder value."

Tropika Kiara is an investment holding company which owns and operates one of Malaysia's largest Chinese restaurant food chain with 40 outlets across the peninsular and the state of Sabah. In its stable are brands including Dragon-I, Canton-I, Ho Min San and the Japanese franchise Yayoi.

It also owns the Advance Tertiary College with 750 students across two campuses in Kuala Lumpur and Penang; as well as two personal grooming brands Bad Lab and Good Virtues.

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Sim Leisure shares ended flat at S$0.22 last Friday. The company requested a trading halt on March 2. It has since sought the lifting of the halt after the market closed on March 2.