1. DIVESTMENT OF BUSINESS
The board of directors (Board) of Bonvests Holdings Limited (Company) wishes to announce that Bon-Food Pte Ltd (Bon-Food), a wholly-owned subsidiary of the Company, has entered into a business transfer agreement (Agreement) with Burger King Singapore Pte. Ltd. (BK Singapore) to sell its business (Business) of operating the Burger King restaurants in Singapore (Restaurants), and the assets relating thereto (Assets) to BK Singapore (Disposal).
The book value and the net tangible asset value, as at 31 December 2008, of the Assets to be transferred to BK Singapore, are approximately S$11.9 million and S$11.4 million respectively1. The consideration for the Disposal (Consideration) is (i) S$16 million for the transfer of certain restaurant leases and fixed assets, and (ii) a sum equivalent to the cost or net book value of certain qualified inventory of Bon-Food in relation to the Business, amounting to an aggregate value of about S$2.0 million to S$3.0 million. The Consideration may be subject to certain adjustments based on the final list of Assets to be transferred pursuant to the Disposal as may be agreed between Bon-Food and BK Singapore prior to Completion. The Consideration was determined on a willing buyer-willing seller basis, based on, amongst others, existing market conditions, the book value of some of the Assets and the costs of certain qualified inventory. Upon the completion of the Disposal, the franchise agreements between Bon-Food and the franchisor, BK Asiapac Pte. Ltd., in relation to the operation of the Restaurants, will be terminated.
2. INTEREST OF DIRECTORS AND CONTROLLING SHAREHOLDERS
None of the Directors or controlling shareholders of the Company has any interest, direct or indirect in the transaction.
3. DOCUMENTS AVAILABLE FOR INSPECTION
A copy of the Agreement is available for inspection during normal business hours at the registered office of the Company at 541 Orchard Road, #16-00 Liat Towers, Singapore 238881 for a period of three (3) months from the date of this announcement. This announcement is made pursuant to Rule 1008(2) of the Listing Manual of the Singapore Exchange Securities Trading Limited. BY ORDER OF THE BOARD Mr Henry Ngo Director 8 January 2010
1 Based on the assumption that all the inventory of Bon-Food will be transferred to BK Singapore pursuant to the Disposal.
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