Sep 3

BreadTalk enters agreement to buy Food Junction for S$80m



File photo of the Food Junction outlet at Bugis in Singapore and a BreadTalk outlet. (Photo: Food Junction website and Facebook@BreadTalk)


SINGAPORE: BreadTalk Group on Monday (Sep 2) announced its intention to acquire food court operator Food Junction Management (FJM) for S$80 million through subsidiary Topwin Investment Holding.


In a filing to the Singapore Exchange, the food and beverage group said its wholly owned subsidiary Topwin had entered into a sale and purchase agreement on Aug 30 for the proposed acquisition of FJM from Food Junction Holdings.


The total consideration of S$80 million will be paid in cash and will be funded through BreadTalk Group's internal resources - including available cash on hand - and debt facilities, according to the filing.

The amount could be subject to further adjustments to take into account actual cash, debt and working capital of FJM as at completion of the acquisition.


The figure was arrived at after "arms’ length negotiations", said BreadTalk Group in its filing. 


It took into consideration factors such as the quality of the assets being acquired and the strategic value of FJM’s existing network of food courts and outlets to BreadTalk Group, as well as its financials, earnings quality and future potential.


FJM and its wholly owned subsidiaries Food Junction Singapore and T&W Food Junction operate food courts and food and beverage outlets in Singapore and Malaysia.


They collectively operate a network of 12 food courts in Singapore and three in Malaysia, with another one scheduled to open in Johor Bahru next year.


BreadTalk Group operates food courts under the Food Republic and Food Opera brands across Singapore, Malaysia, China, Taiwan, Cambodia and Thailand.


As at Jun 30 this year, BreadTalk Group operates 14 food courts in Singapore and two in Malaysia.


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Sep 4Edited: Sep 4


.................As at June 30, BreadTalk operates 14 food courts in Singapore and two in Malaysia under the Food Republic and Food Opera brands.


But Mr Yeo noted that while the transaction value is $80 million, this is for a business whose net profit in the first half of 2019 was just $3,183.


In the 2018 financial year, it recorded a net loss at $1.7 million.


This is darn puzzling, then why even proceed with such a costly purchase????


BreadTalk Group gets regulatory nod for Food Junction buyout












Mainboard-listed food and beverage player BreadTalk Group has obtained regulatory approval for its buyout of Food Junction, paving the way for the group to become the third-largest food court operator in Singapore.


In a statement on Tuesday, the Competition and Consumer Commission of Singapore (CCCS) said it had found that the combined market share of the parties post-merger remains below 20 per cent. This puts the market share "considerably lower" than those of the larger food court operators such as NTUC Kopitiam and Koufu.


The CCCS said that the transaction will not lead to a substantial lessening of competition within the relevant markets in Singapore.


Instead, the merged entity may be able to "better compete" with the other larger food court operators post-merger.

BreadTalk Group will operate the third-largest food court chain in the city-state following the acquisition, behind the NTUC Foodfare-Kopitiam partnership and Koufu.


Food Junction has 15 outlets in Singapore and Malaysia, with one more to open in Johor in early 2020. BreadTalk Group runs 16 food courts under the Food Republic brand on both sides of the Causeway.


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Ownself clear ownself, ain't life fucking grand.

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