Kimly Limited’s subsidiary has entered a share purchase agreement to acquire all the shares in GSPL, which owns the coffee shop property at 12 Haig Road for $11.8 million.
The subsidiary, Kedai Kopi, is a 51% owned subsidiary of Kimly’s wholly-owned subsidiary Kimly Makan Place.
Kedai Kopi has entered into the share purchase agreement with Tan Hock Choon and Tan Kah Huat, owners of the private company GSPL which owns the Haig road coffee shop.
The coffee shop is a two storey HDB shophouse unit with a remaining lease of 82 years.
Kimly says that this acquisition allows the group to secure ownership of the coffee shop property which Kedai Kopi has been operating since April 1, 2021, thereby ensuring continuity of operations.
A total deposit of $0.59 million, or 5% of the purchase consideration was paid upon the signing of the agreement. The remaining amount will be payable to Kimly upon completion.
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The book value of the coffee shop property is $12.16 million, and the purchase will be funded through a combination of external financing of $5.8 million by Kedai Kopi, shareholders’ loans of $2.55 million and $2.45 million, and internal resources of Kedai Kopi amounting to $1.36 million.
Shares in Kimly closed 0.5 cents lower or 1.266% down at 39 cents on Nov 4.
