ST Group Food Industries (SGX:DRX), via its indirect subsidiary GCTea, disposed of its 100% stake in food and beverage outlets in the UK for a nominal fee to Lam Kei Kwan, according to a Monday filing with the Singapore Exchange.
The outlets, GCTea Outlets, GCTea Outlets 2, and GCTea DKJV, were operating under the Gong Cha brand and have been loss-making since inception.
Following the disposal, GCTea Outlets, GCTea Outlets 2, and GCTea DKJV have ceased to be subsidiaries of the group, the filing said.
The disposal is part of the group's transition from operations to royalties and supply chain sales.
The purchaser, Kwan, was a former employee of ST Group Food Industries.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.