Singapore’s BreadTalk Unit Forms Joint Ventures To Operate Bakeries In China
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Singapore baker BreadTalk unit Shanghai Star Food F&B Management has formed joint ventures with Wu Pao Chun Food of Taiwan to operate Wu Pao Chun bakeries, BreadTalk said in a filing Monday.
The joint ventures will run Wu Pao Chun bakeries in Beijing, Shanghai, Shenzhen and Guangzhou. Shanghai Star will hold 80% of the Shanghai joint venture and can own up to 40% of the Beijing, Shenzhen and Guangzhou joint ventures. Both companies expect to conclude joint ventures for Singapore and Hong Kong later.
The deal isn’t expected to have any material effect on the earnings per share and net tangible assets of BreadTalk for the financial year ending Dec. 31. The filing didn’t disclose further financial details.
Questions & Answers
Q.Which specific cities will see Wu Pao Chun bakeries operating under these new joint ventures?
Which specific cities will see Wu Pao Chun bakeries operating under these new joint ventures?
The joint ventures are set to operate Wu Pao Chun bakeries in Beijing, Shanghai, Shenzhen, and Guangzhou. These are the initial locations mentioned in the filing for the new operations.
Q.What is the expected financial impact of these joint ventures on BreadTalk's current financial year?
What is the expected financial impact of these joint ventures on BreadTalk's current financial year?
The deal is not expected to have any material effect on the earnings per share and net tangible assets of BreadTalk for the financial year ending 31st December, according to the filing.
Q.What is the ownership structure for the different joint ventures formed by Shanghai Star Food F&B Management?
What is the ownership structure for the different joint ventures formed by Shanghai Star Food F&B Management?
Shanghai Star will hold 80% of the Shanghai joint venture. For the Beijing, Shenzhen, and Guangzhou joint ventures, Shanghai Star can own up to 40% of each.
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