BreadTalk Group's wholly-owned subsidiary, Topwin Investment Holding, has proposed to acquire Food Junction Management (FJM) from its parent company Food Junction Holdings for SG$80 million. Food Junction Holdings is currently 98.10% owned by investment holding company Auric Pacific Group.
The proposed acquisition will provide BreadTalk with access to Food Junction's existing network of food courts and F&B outlets, allowing the company to both obtain additional revenue streams and benefit from the synergies with its existing food court and F&B outlet business through the streamlining of costs and sharing of resources.
FJM and its wholly-owned subsidiaries Food Junction Singapore and T&W Food Junction are in the business of operating food courts and food and beverage outlets in Singapore and Malaysia. FJM operates a network of 12 food courts in Singapore, including the newly opened Five Spice food court at Jewel Changi Airport. Meanwhile in Malaysia, it has three outlets with an additional one scheduled to open in 2020 at The Mall, Mid Valley Southkey.
Meanwhile, BreadTalk recently reported a 35.3% plunge in its first half net profit, from SG$3.6 million to SG$2.3 million. This was attributed to the amounting costs on distributing and selling, as well as administrative expenses by the group. However, the company overall recorded a revenue of SG$321.0 million, an increase of 7.9% from SG$297.4 million in the first half of 2018. According to the financials, the company will continue to focus its resources in the expansion of key markets and for its Food Atrium business to deepen its penetration in Mainland China, Hong Kong, Taiwan and Cambodia.
The BreadTalk Group CEO Henry Chu Heng Hwee will also be resigning at the end of the year, citing personal and health reasons. According to the company, Chu was responsible for overseeing the company’s global operations, focusing on strategic planning, investments, business development and regional expansion. Upon the resignation, the role and responsibilities of the group chief executive officer will be undertaken by founder and group executive chairman, George Quek Meng Tong.
[Digital Marketing Asia Conference 2019 in Singapore is back! Join us on 8-9 October as we hear from experienced practitioners and thought-leaders on how they are managing complex digital transitions and reimagining new ways for their marketing to become more customer focused, agile and interactive. Check out the agenda and book your seats today.]