SINGAPORE: Singapore Press Holdings (SPH) on Monday (Apr 27) announced it would be divesting wholly owned subsidiary Buzz Shop to Thai-Pore Enterprise for an undisclosed amount.
"This divestment of a non-core business will sharpen SPH Group’s strategic focus on its main business segments of media, retail real estate, purpose-built student accommodation and aged care," said SPH in a media release.
"SPH will continue with its disciplined approach as it reviews its investments and businesses on an ongoing basis to maximise shareholder value."
In response to queries from CNA, SPH said it could not disclose the sale price.
Thai-Pore Enterprise is a regional player in ASEAN with more than 40 years of experience in the distribution, import and marketing of beers, wines, spirits and spring water Waiz from New Zealand.
After the divestment, SPH - which publishes the Straits Times, Business Times and Lianhe Zaobao among other publications - said it would continue to have access to the distribution channels for its titles, with the group retaining the right to distribute and sell its publications at all Buzz outlets.
The move marks Thai-Pore Enterprise's foray into the convenience store business, said its CEO Wee Eng Tee, calling the deal a "key acquisition".
"It supports our growth strategy and enhances our presence in the retail market," said Mr Wee. "We look forward to growing the Buzz brand which SPH has laid a strong foundation (for) in the past decades."
The divestment will not have a material impact on the earnings or the net tangible assets per share of SPH for the financial year ending Aug 31, 2020, said SPH.
Started in the 1990s, Buzz operates and franchises a chain of more than 50 convenience stores across Singapore.