Khong Guan has, on March 22, entered into a shareholders’ agreement with SGProtein to acquire 30% of the latter’s shares for $1.5 million in cash.
The paid-up share capital of SGProtein is expected to be $3.95 million comprising 2.08 million new shares.
Upon its completion, SGProtein will become an associated company of Khong Guan.
SGProtein is a company that produces and sells plant-based meat alternatives. Its founders will be key management personnel responsible for the development and management of its operations.
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The investment, says Khong Guan, is in line with its broader strategy for increasing shareholders’ value through growth.
According to the company, the proposed investment in SGProtein “represents a new and exciting opportunity for growth for [Khong Guan] in Singapore and the region, which are expected to offer a nascent but growing and potentially sizeable market for plant-based food products”.
The investment will be funded through internal resources.
In addition, Khong Guan’s chairman, Chew Soo Lin, and Michael Chew, the son of Khong Guan’s managing director Chew Soo Eng, have agreed to subscribe for new shares in SGProtein amounting to 2%, on a personal basis. The subscription of the shares is subject to the same terms under the agreement signed by Khong Guan.
Shares in Khong Guan closed flat at $1.36 on March 22.
