SPH to divest convenience store chain Buzz
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A Buzz convenience store at 211D Punggol Walk.
PHOTO: ST FILE
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SINGAPORE (THE BUSINESS TIMES) - Singapore Press Holdings (SPH) announced after trading hours on Monday (April 27) that it will be divesting its wholly-owned subsidiary Buzz Shop to Thai-Pore Enterprise for an undisclosed sum.
Thai-Pore Enterprise is a regional player in Asean with more than 40 years of experience in the distribution, import and marketing of beers, wines, spirits and spring water Waiz from New Zealand.
This divestment of a "non-core business" will sharpen SPH's strategic focus on its main business segments of media, retail real estate, purpose-built student accommodation and aged care, said SPH in a media release.
"SPH will continue with its disciplined approach as it reviews its investments and businesses on an ongoing basis to maximise shareholder value," the statement said.
After this divestment, SPH, which publishes The StraitsTimes, will continue to have access to the distribution channels for its publications as under the deal, the group retains the right to distribute and sell its publications at Buzz outlets.
Started in the 1990s, Buzz operates and franchises a chain of more than 50 convenience stores islandwide at bus interchanges, bus shelters, MRT stations, shopping malls and Housing Board heartlands in Singapore. It has an extensive product range and its own line of merchandise. In 2019, it was refreshed with a brand new look, offering more products and services, including digital payment, cash withdrawal and parcel collection.
The divestment will not have a material impact on the earnings or the net tangible assets per share of SPH for the financial year ending Aug 31, 2020.
Mr Wee Eng Tee, chief executive of Thai-Pore Enterprise, said: "This key acquisition of Buzz marks Thai-Pore Enterprise's foray into the convenience store business. It supports our growth strategy and enhances our presence in the retail market. We look forward to growing the Buzz brand, for which SPH has laid a strong foundation in the past decades."
At the end of trading on Monday, SPH rose 4 cents to close at $1.49.
This article has been edited for clarity.
