OSIM International has agreed to raise its effective stake in TWG Tea Company from 45 per cent to a strategic controlling stake of 53.7 per cent.
The price was US$7.2 million (S$9 million), taking into account the audited net tangible assets value of TWG Tea as at March 31 amounting to $4.7 million.
OSIM said in a statement there would be no change in the management team of TWG Tea. It remains committed to the future development and growth of TWG Tea.
The transaction is expected to be earnings accretive this financial year, OSIM noted.