SINGAPORE (Feb 13): Epicentre Holdings, the Catalist-listed retailer of Apple products in Singapore, on Friday entered into an agreement to acquire a 51% stake in Japan IPL Holdings, which operates the aesthetic salon chain Japan IPL Express, for $3.06 million.

Upon completion of the acquisition, Japan IPL will become a subsidiary of Epicentre.

In a Saturday filing to the SGX, Epicentre says the transaction will be satisfied entirely through the allotment and issuance of 20.4 million new ordinary shares in the capital of Epicentre to three of Japan IPL’s shareholders, while the issue price of 15 cents per consideration share represents a discount of about 5.36%.

They are namely: Jonathan Lim Zheng Jie and Chan Lai Choo, who will be each allotted 8.16 million consideration shares of Epicentre, as well as Lim Ze-Tian, who will be allotted 4.08 million of the consideration shares.    

Jonathan Lim is a director of Japan IPL, which is principally engaged in the business of lifestyle and wellness service providers, comprising mainly hair removal and skin rejuvenation using intense pulsed light (IPL) technology.

Currently, the group operates seven Japan IPL Express outlets across Singapore located at Ang Mo Kio Hub, as well as the mass rapid transit (MRT) stations of Holland Village, Somerset, Pasir Ris, Esplanade, Raffles Place and Boon Lay.

Epicentre says its board believes the acquisition is in the best interest of the company and its shareholders, as it deems Japan IPL “profitable and able to provide consistent returns to the group”.

It also notes the company’s potential for growth and expansion, both locally and in the region. “The proposed acquisition presents a good opportunity for the company to diversify its business and revenue stream,” adds the group.

Japan IPL’s earnings for 2H16 as at Dec 31 is $468,000, while its net asset value stands at $499,000.

As at 3.54pm, shares of Epicentre are trading flat at 15 cents.