UOA Dev’s venture into the food and beverage business will be via its wholly owned subsidiaries, Armada Hartasegar Sdn Bhd and Regenta Development Sdn Bhd.
PETALING JAYA: UOA Development Bhd
(UOA Dev) plans to spend RM21.17mil as part of a move to venture into the restaurant business following a term sheet agreement with Hokkien Peng Restaurant Group Sdn Bhd and Hoteland Sdn Bhd.
UOA Dev’s venture into the food and beverage (F&B) business will be via its wholly owned subsidiaries, Armada Hartasegar Sdn Bhd and Regenta Development Sdn Bhd.
The two companies will hold a 51% stake in Hoteland, which will spearhead the F&B venture, with Hokkien Peng holding the remaining 49%, UOA Dev said in a filing with Bursa Malaysia yesterday.
Hoteland has two subsidiaries, Bamboo Estate and Bamboo Circle, which operate F&B businesses known as Botanica Co Restaurant and Potager, respectively.
Under the deal, Armada will provide the set-up costs of the business of RM21.17mil by way of subscription of redeemable preference shares (RPS) in the capital of Hoteland at a subscription price of RM1 per RPS.
UOA Dev said that subject to Hoteland making profit, the redemption of the RPS by Hoteland can be made partially or wholly on yearly basis after the issuance of the RPS.
“If the RPS are redeemed more than five years after they were issued, Hoteland must completely pay a cumulative dividend of 8% per year up until the date of redemption of all the RPS, with the redemption price share being the same as the subscription price,” it added.
The term sheet is not subject to shareholder approval or of other relevant authorities.
UOA Dev recently recorded a 56% year-on-year (y-o-y) rise in revenue to RM85.2mil and 82% y-o-y jump in earnings to RM46.1mil or an earnings per share of 1.92 sen for its first quarter ended March 31, 2023.
