Acquisition of Pacific Bookstores Pte Ltd
Pursuant to Rule 704(15) of the Listing Manual of the Singapore Exchange Securities Trading Limited, Fraser and Neave, Limited (" the Company ") announces that Times The Bookshop Pte Ltd (" TTB "), a wholly-owned subsidiary of the Company's subsidiary, Times Publishing Limited, has today acquired 49% of the issued share capital of Pacific Bookstores Pte Ltd (" Pacific Bookstores ") (the " Acquisition "). TTB has also been granted (i) an option (" Call Option 1 ") to acquire, within 2 years of completion of the Acquisition, further shares in the capital of Pacific Bookstores so as to increase its shareholding to 60%, and (ii) a further option to acquire, at any time after exercising Call Option 1 but before the expiry of 5 years from date of completion of the Acquisition, the balance 40% of the issued share capital of Pacific Bookstores.
Pacific Bookstores carries on the business of selling books and stationery through bookstores in schools and online cyber bookstores.
The consideration for the Acquisition is S$2.65 million, subject to adjustment under a profit warranty, and was arrived at on a "willing-buyer-willing-seller" basis. The consideration paid in cash was funded from internal sources.
The net asset value of Pacific Bookstores as at 30 September 2006 is estimated to be S$3.87 million.
The transaction is not expected to have a material effect on the net tangible assets per share or earnings per share of the Group for the current financial year.