Joint Venture With Paris-Based Restaurant Operator To Launch A New Oriental Dining And Bar Concept At The Old Thong Chai Building
The Board of Directors of Tung Lok Restaurants (2000) Ltd ("Tung Lok" or "the Company") wishes to announce that Tung Lok has on 21 July, 2001 entered into a Joint Venture Agreement ("JV") with Copilot Developments Limited ("Copilot"), a company incorporated in the British Virgin Islands as an International Business Company.
The JV company, Club Asiana Pte Ltd, will introduce and develop the "Asian Restaurant And Bar" concept in Singapore under the same name. It will occupy the Old Thong Chai Building, a local historical monument sited on Eu Tong Sen Street. This JV brings together Tung Lok's knowledge and experience of restaurant operations and management in the Singapore market as well as Paris-based Copilot's expertise in bar management and the French interpretation of Oriental dining and entertainment. The "Asian Restaurant And Bar" concept is owned by a Copilot's French shareholder.
Copilot's principal activity is management and consultancy of restaurants and bar concepts which currently operates the successful Asian Restaurant and Bar in Paris.
The total investment of the joint venture company is S$1.6 million; its initial issued and paid-up capital is S$900,000. Tung Lok and Copilot will respectively subscribe to 55 % and 45 % of Club Asiana's equity. Of the investment outlay, an additional sum of S$700,000 will be obtained through internal funds, hire purchase and advances from Tung Lok and Copilot.
This JV is part of Tung Lok's expansion strategy, which also includes acquisitions and new restaurant openings. Club Asiana is the first JV that the Group has entered into since IPO. By the end of 2001, the Group will increase its stable of restaurants to 19.
When ready, the 11,000-sq-feet Asian Restaurant and Bar which can seat 300, will have 2 open courtyards, a bistro, a fine dining hall and a trendy bar.
The transaction is not expected to have any material impact on Tung Lok's net earnings per share or net tangible assets per share for the financial year ending 31 December 2001.
None of the Directors or substantial shareholders of Tung Lok has any interest, direct or indirect in the aforesaid transactions, save their shareholdings in the Company.