SINGAPORE: Singapore-listed Thai Beverage has signed a memorandum of understanding to buy a 43.9% stake in the Oishi Group for 3 billion Thai baht or some S$128 million.

The MOU was signed with Yodkij Business, which is controlled by Thai Beverage chairman Charoen Sirivadhanabhakdi and his wife.

Thai Beverage, in a filing with the Singapore Exchange, said the acquisition is in line with its intention to broaden its core business and to enhance the contribution from its non-alcoholic business.

Thai-listed Oishi Group operates a chain of Japanese restaurants. It also makes and sells semi-finished food, finished food, bread, ramen and beverages.

The transaction has two conditions. All parties must sign a definitive agreement by September 30, and shareholders must approve the acquisition and sale of Thai Beverage's wholly-owned unit Thai Alcohol for 1.6 billion Thai baht.

On Wednesday, Thai Beverage announced a memorandum of understanding with Damrongfah, also controlled by Mr Charoen, to sell Thai Alcohol. - CNA/ir