Neo Group invests in Singapore Kitchen Equipment Limited
Long-term returns deemed promising.
The Board of Directors of Neo Group Limited (Neo Group) announced through the Singapore Exchange that the Company has subscribed for and been allotted 4,500,000 ordinary shares in the capital of Singapore Kitchen Equipment Limited (SKE) in connection with its initial public offering and listing on the Catalist Board of the SGX-ST.
The Subscription Shares represent 3% of the total paid up capital of SKE and the aggregate consideration for the Investment of S$900,000 is funded through internal resources of the Group.
The Neo Group Board said it has considered the prospects of SKE’s principal business (being one of the leading Singapore-based commercial and industrial kitchen solutions providers) and believes that "the Investment represents a good financial investment which will provide long term returns."
"As Singapore’s No. 1 events caterer, the Company also hopes to be able to leverage off SKE’s expertise in commercial and industrial kitchen design and engineering in fulfilling its own business plans as it sees potential synergies between SKE’s and its own business activities," it added.
The Investment is not a discloseable transaction under the provisions of Chapter 10 of the Rules of Catalist of the SGX-ST.