SINGAPORE - Restaurant operator Katrina Group is acquiring its first Japanese establishment with an agreement to buy the two-restaurant Tomo Izakaya business for $952,767 in cash, according to filings with the Singapore Exchange on Monday night (Oct 1).
The purchase price comprises $575,000 as an initial purchase price plus the target's estimated net tangible asset value as at Sept 30 of $377,767. The consideration will be adjusted if the actual net tangible asset value of Tomo Izakaya differs from the estimated value by $10,000 or more.
Tomo Izakaya operates two Japanese restaurants in Singapore, one in Clarke Quay and the other in the Esplanade Mall.
If the deal had been completed in fiscal 2017, Katrina's earnings per share would have increased to 0.50 cent from 0.43 cent, while net tangible asset per share would have declined to 5.87 cents from 6.12 cents.
Katrina said that the deal will give the group a new brand serving a type of cuisine that the company does not currently have. Katrina's existing stable of brands comprises restaurants that serve Chinese, Indonesian, Mexican, Thai and Vietnamese foods.