In a media release on Monday, SPH notes that the divestment of a non-core business will sharpen its strategic focus on its main business segments which consist of media, retail, retail real estate, purpose-built student accommodation and aged care. The transaction amount was not disclosed.
After this divestment, SPH says that it will continue to have access to the distribution channels for its publications. In addition, the group retains rights to distribute and sell its publications at all Buzz outlets.
“Under the management of SPH, Buzz has grown significantly over the years in terms of product offerings and scope of services,” says Buzz CEO and SPH’s chief circulation officer Chua Wee Phong.
“Thai-Pore Enterprise’s proven track record in distribution, importation and marketing will definitely bring Buzz forward,” he adds.
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Buzz currently operates and franchises a chain of over 50 convenience stores islandwide at bus interchanges, bus shelters, MRT stations, shopping malls and HDB heartlands in Singapore.
In 2019, the convenience store chain was refreshed with a new look, offering more products and services, including digital payment, cash withdrawal and parcel collection.
CEO of Thai-Pore Enterprise Wee Eng Tee notes that the acquisition marks the group’s foray into the convenience store business, boosting both its growth strategy and presence in the retail market.
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“We look forward to growing the Buzz brand which SPH has laid a strong foundation in the past decades,” says Wee.
SPH says this divestment will not have a material impact on the earnings or the net tangible
assets per share of the group for the financial year ending Aug 31.
Shares in SPH closed four cents higher, or 2.8% up, at $1.49 on Monday prior to the announcement.
