Kimly Makan Place, the wholly-owned subsidiary of Kimly Limited, has entered into two joint venture agreements (JVA) with Hong Kah Holdings and Joo Seng Holdings for the operation and management of the coffeeshops located at Block 376 Bukit Batok and Block 1 Upper Aljunied Lane, respectively.
The coffeeshops are leased by the two joint venture (JV) companies Hong Kah Food Place and Joo Seng Food Place.
Each of the JV companies were incorporated by Hong Kah Holdings and Joo Seng Holdings with an initial issued share capital of $100 comprising 100 ordinary shares each.
Following the JVA, the respective JV companies will be allotting 147,000 ordinary shares to Kimly Makan Place, and 152,900 ordinary shares each to Hong Kah Holdings and Joo Seng Holdings at a consideration of $147,000 and $152,900 respectively.
Kimly Makan Place will hold 49% of the shares in both JV companies, while Hong Kah Holdings and Joo Seng Holdings will each hold the remaining 51% shares in the respective companies.
Kimly Makan Place will pay a total consideration of $294,000 for 49% of the shares in both JV companies.
The board of directors of each of the JV companies will comprise two directors – one each from Kimly Makan Place and Hong Kah Holdings or Joo Seng Holdings. The chairman of the board of the directors of each JV company shall be solely appointed by Kimly Makan Place.
In a bourse filing on September 9, Kimly says its entry into the JV agreements is in line with its strategy to expand its network of food outlets in Singapore and to establish new food outlets and stalls when “suitable strategic locations” become available.
Kimly Makan Place says it will enter into the third and final JV agreement with S. Tong Hong for the operation and management of the short-term HDB coffeeshop lease for the coffeeshop at Block 429A Choa Chu Kang Avenue 4 at a later date.
Shares in Kimly closed flat at 24.5 cents on September 9.
