Swensen's parent firm to acquire catering group

Singapore

ABR Holdings, the food and beverage (F&B) company that owns Swensen's in Singapore, on Wednesday announced its proposed acquisition of catering group Chilli Padi.

ABR said: "The board believes the proposed acquisition will enhance the F&B selections within the group's portfolio and bring in an established brand into the group's business, as well as expand its revenue base."

The target companies comprise Chilli Api Catering, Chilli Padi Nonya Catering and Chilli Padi Nonya Restaurant. Their principal business activities include operating restaurants, and providing catering services and confinement products.

ABR on Wednesday entered into a memorandum of understanding with shareholders of Chilli Api Catering, Chilli Padi Nonya Catering, and Chilli Padi Nonya Restaurant, being Patricia Lee, Lee Boon Hwa and Lee Cheng Watt, in relation to the proposed acquisition of their entire shareholdings in the respective companies.

ABR noted that the purchase consideration for the sale shares will take into account the audited net profit after tax of Chilli Padi Group for its financial year ended Dec 31, 2016, as well as adjustments to be agreed by the parties; it will be paid in cash.

In November, ABR Holdings posted a nearly 44 per cent fall in net profit to S$1.373 million for its third quarter ended Sept 30, 2016, down from S$2.438 million a year ago.

Revenue rose 1.6 per cent to S$26.68 million for the quarter. ABR said that while restaurant operations here registered lower revenue, this was mitigated by additional contribution from a new outlet which opened in the second quarter of 2016.

Earnings per share fell from 1.21 Singapore cents to 0.68 cent. No dividends were declared for the period.

ABR shares closed Wednesday trading 1.4 per cent or one cent higher at S$0.71.