Increase In Investments In Tung Lok (China) Holdings Pte Ltd To 100%; Joint-Venture For New Restaurant In Beijing; And Planned Investment In Restaurant In Chengdu
The Board of Directors of Tung Lok Restaurants (2000) Ltd ("Tung Lok" or the "Company") wishes to announce the following developments with regards to its expansion in the People's Republic of China ("PRC"):
1) has increased its investments Tung Lok (China) Holdings Pte Ltd.("TLC") by a further S$360,000 for the balance 30% stake in TLC that it does not already own.
Tung Lok had on 20 February 2004 announced that it had invested S$1.2 million for 840,000 ordinary shares of S$1.00 each, representing 70% of TLC with the balance 360,000 ordinary shares of S$1.00 each invested jointly by four individuals - Messrs Tay Kwang Thiam, Goh Cheng Liang, Sim Seng Jin and Sim Seng Kiang.
The four individuals have jointly agreed to dispose their combined 360,000 ordinary shares of S$1.00 each at par to the Company which will be funded by internal resources. Following the transaction TLC will be a wholly owned subsidiary of the Company, to be used as a China investment vehicle.
2) TLC has entered into a joint-venture with Mr Meng Kai, the owner of the Beijing Xiang-E Qing Restaurant Ltd. ("MK").
TLC will take a 70%-stake in the joint-venture which is in the process of registering a company in PRC to be named My Humble House in Beijing (Restaurant) Company Ltd which will open a new restaurant in the Chinese capital with a total investment of 6 million RMB (S$1.2 million).
The entering of the joint venture is not expected to have any material impact on the net tangible assets per share or earnings per share of the Company for the financial year ending 31 December 2004.
3) TLC plans to take stake in new restaurant in Chengdu also to be developed by MK, the details of which will be announced later.
Except as disclosed above, none of the directors and so far as the directors are aware, none of the controlling shareholders or substantial shareholders of the Company has any interest, direct or indirect, in the above transactions.
By Order Of The Board
Tjioe Ka Men
Managing Director
10 May 2004