Mainboard-listed Koufu Group, on Dec 30, entered into an agreement for the sale of its stake in PT Super Tea Indonesia to PT Berkah for a consideration of 4.52 billion rupiah ($424,537).

The consideration for the share sale is equivalent to approximately 55% of the book value of Super Tea Indonesia, based on the unaudited financial statements of the company for the financial period ended Sept 30.

PT Berkah will pay some 2.26 billion rupiah, representing 50% of the total consideration amount upon the signing of the termination agreement. It will pay the remaining 50% in three instalments of 338.7 million rupiah by April 30, 2021, another 564.5 million rupiah by Aug 31, 2021, and the final 1.35 billion rupiah by Dec 31, 2021.

Super Tea Indonesia is a joint venture company set up by Koufu’s subsidiary Super Tea and PT Berkah Cipta Adirasa on Dec 18, 2019, to develop, establish, manage and operate the business of operating food and beverage outlets under the proprietary marks of Super Tea and to grant sub-licences to other parties to operate the same within Indonesia.

Following the sale, Super Tea and PT Berkah have mutually agreed to terminate the joint venture (JV) agreement for Super Tea Indonesia.

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Super Tea will also transfer its 55% shareholding interest in Super Tea Indonesia to PT Berkah as well as Felix Lokanata and Aditiya Fajar Junus, each as nominees of PT Berkah.

SEE: Koufu brings in the dough with attractive acquisition: CGS-CIMB

Upon completion of the agreement, Koufu will cease to have any interest in Super Tea Indonesia.

It will, however, continue its licensing agreement with Super Tea Indonesia “in a strategic move to streamline operations”, says Koufu in a Dec 30 statement.

While the joint venture was in line with Koufu’s long-term objectives of delivering growth and enhancing its revenue stream, the group thought that it would be more “effective and beneficial” to terminate the joint venture arrangement and continue the licensing arrangement with Super Tea Indonesia in view of the Covid-19 outbreak and travel restrictions.

“This is because the Group is unable to effectively manage and oversee the business and operations of Super Tea Indonesia, given that its management and employees are unable to travel to the Indonesia,” it says.

“In this manner, the Group is able to continue to reduce the associated costs and risks, while streamlining operations and continuing to expand the overseas presence of the food and beverage outlets under the R&B Tea and Supertea brands. The proceeds of the Share Sale will be utilised for general working capital purposes,” it adds.

As at 9.42am, shares in Koufu are trading flat at 68 cents.