Coffeeshop operator Kimly is acquiring a 75% stake in the Tenderfresh business for a consideration of $54 million, which will be satisfied by cash and the issuance of new shares in Kimly.

In an announcement dated May 11, the company says that it has entered into an acquisition agreement with Soh Chun King, Koh Siew Tin and Chew Kian Ho, founders of the Tenderfresh business. They will retain a 25% stake in the business post-transaction.

$34 million of the purchase consideration will be paid in cash, while $16 million will be satisfied through the issuance of 51.2 million shares in Kimly at 31.24 cents per share. A remaining $4 million will be paid in cash, subject to the Tenderfresh business achieving a profit before tax of $9 million for its FY2022 ending September.

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