HIGH-5 to acquire 80 pct stake in Pastryville

HIGH-5 to acquire 80 pct stake in Pastryville
Business & Markets 2014
Written by Bernama
Thursday, 20 March 2014 19:57

KUALA LUMPUR (March 20): HIGH-5 Conglomorate Bhd, formerly known as Silver Bird Group Bhd, has proposed to acquire a 80 per cent equity interest in Pastryville Holdings (M) Sdn Bhd, together with its three related companies, for RM220,000 cash.

The three related companies are Pastryville Distribution (M) Sdn Bhd, Pastryville Concept (M) Sdn Bhd and Pastryville Retail (M) Sdn Bhd.

In a filing to Bursa Malaysia today, HIGH-5 said that the acquisition is through its wholly-owned subsidiary, Madeleine Property Sdn Bhd, with Pastryville's shareholders — Hoi Kong Fei, Poh Cheng Teng and Soh Swee Kim.

The acquisition is in line with the company's plan of venturing into the premium and gourmet bread market, as well as to complement its existing initiatives to expand into daily fresh bakery products, it said.

"It would enable the group to acquire the Pastryville group's existing infrastructure of bakery-café and daily fresh bakery products, including customers, suppliers, employees, equipment and systems.

"Further, the Pastryville group's outlets will provide opportunities for HIGH-5 to launch its new products to retail customers directly, and widen the brand recognition," it said.

The company would also benefit from the cross-selling of products and operational cost savings, said HIGH-5.

Incorporated on March 28, 2013, the French-style bakery and coffee house, Pastryville, is a private limited company, with an authorised share capital of RM1 billion, comprising one million ordinary shares of RM1 each.

The company has a pro forma consolidated net asset position of RM446,437, and is presently loss-making, with an estimated consolidated monthly net loss of about RM50,000 a month.