BreadTalk Group (SGX: CTN), recently announced its acquisition of food court operator Food Junction Management (FJM) for S$80 million through subsidiary Topwin Investment Holding on 2nd September 2019.
According to the SGX filing, the total consideration of S$80 million will be paid in cash and will be funded through BreadTalk Group’s internal resources – including available cash on hand – and debt facilities.
While Food Junction is a household name in Singapore….does the acquisition even make sense?
We don’t believe it does in the slightest.
Before we tell you why it is first necessary to explain the backgrounds of both Breadtalk and Food Junction.
Introduction of BreadTalk
Starting with just 1 bakery outlet, Chairman Dr. George Quek, has rapidly expanded BreadTalk Group to become a distinctive F&B brand owner that has established its mark on the world stage with its bakery, restaurant and food court footprints.
Today, the group owns