SINGAPORE (Dec 18): Koufu Group announced that its subsidiary, Super Tea, has entered into a joint venture with PT Berkah Cipta Adirasa to develop, establish, manage and operate Super Tea's food and beverage brands in Indonesia.

Koufu says the joint venture presents the group with an opportunity and an effective platform to expand its business of operating food and beverage outlets in Indonesia.

It adds that the joint venture is in line with the group’s long term objectives of delivering growth and enhancing its revenue stream.

Super Tea will hold a 55% stake in the JV company, while PT Berkah Cipta Adirasa will hold the remaining 45%. The JV company will be incorporated in Indonesia with an initial paid-up share capital of IDR 10.0 billion ($968,000).

Super Tea will subscribe for 55% of the equity interest in the joint venture company for a cash consideration of IDR 5.5 billion, which will be funded through internal resources.

This announcement came on the heels of the group terminating its previous joint venture with A&O Assets Sdn Bhd and Chan Bee Kiew for its Indonesian expansion.

In the termination announcement dated Nov 12, Koufu said that the JV partners mutually agreed to terminate their agreement after the undertaking further market research on the Indonesian F&B market, including regulatory framework.

Having regard to the foregoing, the JV partners were in agreement that it would be more beneficial for Koufu to pursue its expansion into Indonesia with a local partner.

Shares in Koufu closed flat at 78.5 cents on Wednesday.