Company Briefs: Katrina Group

Katrina Group

Katrina Group, which owns and operates restaurants such as Bali Thai, Streats and So Pho, completed on Monday its purchase of serviced residences provider Straits Organization for $358,000. It marks the group's entrance into the hospitality segment.

Straits Organization was founded last December and manages around 125 units in 15 different apartments and condominiums here.

Mr Alan Goh, who is founder, chief executive and executive chairman of Katrina, said: "This acquisition reinforces our strategy of diversifying the group's revenue stream across businesses, markets and segments to mitigate against weaknesses from any one sector."

He added that this acquisition is earnings accretive and believed it will provide a stable base of recurring income. It also opens up the possibility for "cross-sector collaboration for our core F&B business and further regional expansion", he said.

Pine Capital

Financial services group Pine Capital plans to buy up to a 51 per cent stake in Hong Kong-based asset management firm Silver Tree Hong Kong for HK$2.55 million (S$447,368) in shares, according to an announcement yesterday before the market opened.

Pine Capital will first acquire a 9.9 per cent stake in Silver Tree following the relevant approvals. The remaining 41.1 per cent will be acquired upon obtaining further approvals, including from Pine Capital shareholders. The seller of the Silver Tree shares is financial industry veteran David Sarkis, who currently heads Silver Tree's investment management team and is its sole shareholder.

The consideration for the purchase will be met by the issuance of 165.7 million new Pine Capital shares at 0.27 cent apiece, which is a 170 per cent premium to Pine Capital's volume-weighted average price of 0.1 cent on Dec 7.

The new shares represent 2.84 per cent of Pine Capital's outstanding issued shares as at Dec 7. The company had however proposed a placement of 799 million new shares at 0.27 cent per share on Nov 27, and has taken a convertible loan facility that could be converted into one billion new shares at 0.27 cent each. The consideration shares for the Silver Tree acquisition will thus represent about 2.1 per cent of Pine Capital's enlarged share base.

Silver Tree posted a net loss of HK$10.8 million for the year ended Dec 31, 2017, and had a net tangible asset value of HK$9.5 million as at the end of last year.

A version of this article appeared in the print edition of The Straits Times on December 12, 2018, with the headline 'Company Briefs'. Print Edition | Subscribe