SINGAPORE - Jeweller Soo Kee Group plans to invest up to S$800,000 for a 70 per cent stake in a bullion business.
Soo Kee has signed a memorandum of understanding with Dai Keng Trading to set up a joint venture called DK Bullion to distribute precious metals in Singapore, Malaysia and Indonesia.
Soo Kee's investment will be in two tranches - the first payment of S$300,000 will be made once the share acquisition is completed while the remaining S$500,000 will be paid only if DK Bullion achieves a total net profit of at least S$1.2 million within three years from the time that the acquisition is completed.
"We see the bullion business as a strategic fit to Soo Kee Group's overall strategy in business expansion and introduction of new product lines," said executive director and chief executive Daniel Lim.
"We will be able to offer an alternative investment platform for our customers as investment-grade precious metal can be traded in Singapore without the 7 per cent goods and service tax."