A new subsidiary of Catalist-listed GKE Corporation Limited has entered into an agreement to be one of Singapore Telecommunications ’ (Singtel) distributors in Singapore.
Under the agreement, GKE Retails will own and operate nine Singtel Exclusive Retailer outlets in Singapore to provide lifestyle products, along with Singtel-related products and services, which include mobile handsets and accessories, broadband solutions, Singtel TV and smart home solutions.
GKE has partnered with an undisclosed “experienced dealer” who specialises in retailing and consumer services. This partner has operated through his own outlets “in the past few years”, says GKE CEO and executive director Neo Cheow Hui.
Neo refers to this dealer as “the JVP”. GKE will own 60% of GKE Retails, with the JVP holding the remaining 40%.
GKE Retails will acquire five retail outlets, including the lease of premises owned and managed by the former distributor; along with four retail outlets owned and operated by the JVP.
GKE Retails will own and operate nine retail outlets in Singapore to conduct retailing and consumer services business and also oversee another seven retail outlets that are owned and operated by independent dealers under the dealership arrangement.
See also: GKE seeking shareholders' nod to diversify into mobile phones distribution
The move follows shareholder approval on Jan 27 for GKE to diversify into the sales and distribution of telecommunications mobile handsets and accessories business in Singapore. GKE incorporated GKE Retails on Jan 15.
This expands GKE’s operations from integrated warehousing and logistics solutions in China and agriculture in Singapore.
The group does not expect this new business to have a material impact on its financial results for the financial year ending May 31.
As at 9.45am, GKE shares are trading 0.1 cent higher, or 1.1% up, at 9.1 cents on Feb 24.
