SINGAPORE (Aug 21): Electronic components and consumer products distributor Serial System on Monday announced it is diversifying into the durian business to provide additional income streams for the group.
The group’s wholly-owned subsidiary, Serial System International (SSIPL), and its executive chairman and group CEO, Derek Goh Bak Heng, entered into a joint venture agreement for the newly incorporated Bast Investment (BIPL).
BIPL has agreed to subscribe for 10 new shares of Musang Durian for a total of 10 million ringgit ($3.2 million), which represent approximately half of the enlarged issued and paid-up share capital of Musang Durian.
Following the subscription, SSIPL will hold an effective interest of 27.5% in Musang Durian, which is engaged in the business of manufacturing, processing, trading, and exporting of durian puree and durian-related products.
BIPL has a total issued and paid-up capital of $300,000. SSIPL and Goh will invest 55% and 15% equity interests in BIPL, respectively. The remaining 30% will be held by an individual named Philip Ting Ding Ing.
Serial System says in a filing to SGX on Monday that the total investment of $165,000 for the 55% stake in BIPL by SSIPL will be funded through internal resources.
The group adds that the investment is not expected to have any material impact on its net tangible assets and earnings per share for the current financial year ending Dec 31, 2017.
Shares of Serial System closed 0.2 cent lower at 17.6 cents on Monday.