Drinks distributor Octopus (APAC) Holdings has raised $5 million from a business partner by issuing new shares.
Spanish firm Gruppo Osborne will subscribe for new shares at 6.8 cents each, which is a 13.33% premium to the April 9 closing price of 6 cents.
The shares, halted ahead of this announcement, will resume trading on April 14.
Upon completion of the deal, Osborne will hold a stake of 6.4% in Octopus.
The investment is part of a broader agreement, where Octopus will under a five-year agreement help Osborne manage its distribution value chain in Singapore.
Osborne owns and manages more than 30 brands across wines, spirits such as Carlos I brandy, Nordés gin, Cinco Jotas ham and Bodegas Montecillo wines.
Octopus was previously known as GS Holdings, which was listed on the SGX as a provider of dish washing services before it transforms into new businesses under new controlling shareholders.
"This partnership with Octopus represents a decisive step in Osborne’s international growth strategy," says Osborne's CEO Fernando Terry Osborne.
"Asia-Pacific is a priority region for our brands, and Singapore provides a solid platform from which to strengthen our presence in high-potential markets," he adds.
Paul Hopkins, CEO of Octopus, says this collaboration goes beyond distribution.
"By combining Osborne’s production expertise with our market knowledge, we will be able to develop products built for Asian consumers from the outset," he adds.
The distribution agreement is expected to contribute to Octopus’ revenue growth and enhance margins through a greater mix of premium, brand-led products.
Octopus plans to ink similar deals down the road.
