BreadTalk is synonymous with freshly baked $1 floss buns & an open concept bakery store with their signature white tongs & trays.
However, the homegrown brand has been facing financial woes of late, posting a $5.8 million net loss in 2019, reports The Straits Times.
Now, the company will be delisting themselves on Friday (5 Jun) after a “compulsory acquisition” by BTG Holding.
This means that BreadTalk will no longer be listed on the Singapore Exchange (SGX), and citizens won’t be able to buy or sell shares from the company.
The group first issued a “voluntary conditional cash offer” to buy back shares at a price of $0.77 in Feb 2020.
BreadTalk’s share price has previously oscillated between S$0.50-$1.25, according to DrWealth.
This was followed by the halting of the trading of BreadTalk’s shares on 21 Apr.
United Overseas Bank made an offer on BTG Holding Company’s behalf to buy back remaining ordinary shares issued, before exercising their right to a compulsory acquisition.
BTG Holding Company was created by BreadTalk’s founder Mr George Quek, his wife Ms Katherine Lee & Thailand’s Minor International as a “special purpose vehicle” to complete this deal, reports Business Times.
Possible reasons for delisting a company from the stock exchange include:
BreadTalk will join other homegrown companies who’ve delisted from SGX like:
Back in March, BreadTalk shared that paycuts of 10-50% were conducted till June for staff in senior & middle management roles.
BreadTalk’s expansion to China was also one of the reasons attributed for a “challenging” business environment, with 4th quarter earnings “dragged down” by the performance of outlets in China & the impact of Covid-19 outbreak.
Food Republic, Food Junction & Toast Box are brands which remain & continue to operate under the domain of BreadTalk.
For a company founded in 2000, BreadTalk has achieved much over the short span of 20 years.
From a humble single outlet at Bugis Junction, to hundreds of bakeries & food courts in the region, BreadTalk remains one of Singapore’s success stories.
We hope that the company’s decision to delist from SGX & restructuring measures will go smoothly.
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Featured image adapted from Google Maps.
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