Investors / Newsroom
News

Acquisition Of Additional Shares In Joint Venture Company

BackJul 15, 2002

The Board of Directors of Tung Lok Restaurants (2000) Ltd ("Tung Lok" or "the Company") wishes to announce that Tung Lok has entered into an agreement for sale and purchase of shares with Copilot Developments Limited ("Copilot") to purchase from Copilot 405,000 ordinary shares of $1/- each fully paid, representing 45% of the issued and paid-up capital of Club Asiana Pte Ltd ("Club Asiana") for the sum of $80,000/-. Following the acquisition, Club Asiana will be a wholly-owned subsidiary of Tung Lok.

Club Asiana operates a restaurant-cum-bar at the Old Thong Chai Building, a local historical monument sited on Eu Tong Sen Street under the name "Asian Restaurant & Bar", which is owned by a Copilot's French shareholder.

The audited net asset value of Club Asiana as at 31 December 2001 is about ($568,006/-). The consideration amount of $80,000/- was agreed upon after commercial negotiation on a willing-buyer, willing-seller basis and having regard to the goodwill generated and the exclusive free use of the name "Asian Restaurant & Bar" up to 31 December 2003. Thereafter, the Company may negotiate for a further licence to use the name at a fee to be mutually agreed upon. The consideration amount has been satisfied in cash from internal resources.

The transaction is not expected to have any material impact on the net earnings per share or net tangible assets per share of the Company for the year ending 31 December 2002.

None of the Directors or substantial shareholders of Tung Lok has an interest, direct or indirect in the aforesaid transaction, save their shareholdings in the Company.