GS Holdings’ wholly-owned subsidiary Octopus Distribution Networks (ODN) acquired the rights to five beer brands and their customers for about $3 million.
GS Holdings acquired ODN for $11.8 million last October, as part of the group’s efforts to expand its business beyond F&B operations, to distributions.
ODN entered an agreement with LHA Food & Beverages on Sept 8, for the acquisition of LHA’s distribution business. Under this, ODN has exclusive distribution rights for Corona and Budweiser beers in Singapore, excluding the duty free market.
ODN will also be acquiring the rights to distribute 11 Degree Premium Yanjing Beer in Singapore, as well as the trademarks of RÖSSL BIER and COMO BERE beers.
As part of the transaction, ODN will acquire the existing customers, relevant databases and contracts, all licenses and permits, all inventories, relevant property, plant and equipment, all relevant intellectual properties and agreed employees of LHA’s distribution business.
This is for cash consideration comprising the value of inventories as at completion date and $1.55 million for the rest of the distribution business.
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Based on the value of $1.47 million for the book value of inventories as at June 30, and the amount of $1.55 million, the aggregate consideration is estimated to be approximately S$3.02 million.
Shares in GS Holdings closed 0.1 cents lower or 2.564% down at 3.8 cents on Sept 8.
