ST Group gets majority control of Papparich Australia
The group has increased its equity interest in PAPL to 90%.
Singapore-listed ST Group Food Industries Holdings announced that its wholly owned subsidiary STG Food Industries (SFI) will be getting a 40% stake in Papparich Australia Pty Ltd (PAPL) from Papparich Group Sdn Bhd (PGSB) for a cash consideration of S$1.4 million (A$1.4 million).
According to a bourse filing, the group will increase its equity interest in PAPL from 50% to 90% following the acquisition of 120,000 ordinary shares.
The company noted that PGSB is the ST Group’s joint venture partner in relation to PAPL and is not a subsidiary or an entity within the group itself.
The filing added that sale shares consideration was determined based on arms' length negotiation and was arrived at on a willing-buyer, willing-seller basis, taking into account various factors such as the net tangible asset value of the shares.
Thenet asset value of the shares stood at A$1.8 million, based on the audited financial statements of PAPL for the financial year ended June 30, 2021.
Separately, the group also entered into a deed of assignment with PGSB subsidiary Fabulous Entity (FESB) to acquire the registered trademark rights owned by FESB to the food and beverage brand name PappaRich in Australia and New Zealand for a cash consideration of A$15,000.
The trademark acquisition will allow the group to have “full autonomy” to expand and grow the Papparich brand in Australia and New Zealand, the group continued.