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Soo Kee Group to invest in bullion business
JEWELLER Soo Kee Group on Tuesday said it plans to invest up to S$800,000 for a 70 per cent stake in a bullion business.
Under a memorandum of understanding, Soo Kee Group will take a stake in DK Bullion Pte Ltd, which distributes precious metals in Singapore, Malaysia and Indonesia, as well as stores precious metals.
A first payment of S$300,000 will be made once the share acquisition is completed. The remaining half a million will only be paid if DK Bullion achieves a total post-tax profit of at least S$1.2 million within three years from the time that the acquisition is completed. For the financial year ended June 30, 2015, it recorded a net profit of S$55,554.
"We see the bullion business as a strategic fit to Soo Kee Group's overall strategy in business expansion and introduction of new product lines," Daniel Lim, executive director and CEO of Soo Kee said.
"We will be able to offer an alternative investment platform for our customers as investment-grade precious metal can be traded in Singapore without the 7 per cent goods and service tax."