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SINGAPORE – Kimly Limited, Singapore-listed coffee operator, cancels its acquisition of Asian Story Corporation (ASC) beverage company for $ 16 million. An agreement was requested by the authorities as part of an investigation.
At the same time, he asked for the resumption of trading of his shares. His stock has been voluntarily suspended since Tuesday 27 November.
A week ago, Kimly and ASC received letters from the Department of Business Affairs (CAD) and the Monetary Authority of Singapore, requesting documents because of a potential breach under the Securities and Exchange Commission. Futures Act, said Kimly in a document filed at the Singapore Exchange late Thursday, November 29.
In the case of the coffee shop, the authorities requested documents concerning its initial public offer, its acquisition of ASC, and the archives of its secretariat dated 1 January 2016.
They also requested computer equipment used by Kimly Executive Chairman Lim Hee Liat, Executive Director Chia Cher Khiang, and former Non-Executive Director Ong Eng Sing. Messrs. Lim and Chia have since been interviewed by the CAD, to whom they have also handed over their travel documents.
<! – ASC was also asked to produce its financial archives and secretariat, as well as the documents related to its recent acquisition, announced in July.
"The authorities have not disclosed to the company any further details of his investigation," Kimly said in his paper, adding that his intention was to cooperate fully with the investigation. Its executive directors will continue to assume their roles, as no formal charges have been made.
The company, however, canceled its acquisition of ASC, she said in a separate document released the same day.
He explained that last week, Pokka Corporation (Singapore) announced its intention to terminate a manufacturing agreement with ASC, bringing the Kimly board to consider the potential consequences. After discussions "and taking into account the impact of the termination on ASC as well as other relevant factors," the parties involved decided to revisit the acquisition, Kimly said.
It has since been repaid up to $ 12 million, the balance to be repaid over three years, said the operator, which runs nearly 70 food outlets and 130 food stalls. different brands all over the island.
On Tuesday, November 27, Kimly requested the suspension of trading of its shares pending updates to its shareholders, which were to contain additional information on a recent acquisition. This led to talk that the suspension could be related to the ASC's agreement.
Given the reversal of Kimly's most recent acquisition, ASC's financial results have not been consolidated in its unaudited financial statements.
Reported 2.1% growth in attributable net income to $ 21.9 million for the year ended September 30, and revenues increased 5.3% to 202.2% millions of dollars.
This article was first published in The Straits Times. Permission required for reproduction.
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