Bromat Holdings Revises Sale Terms for Dining Haus Subsidiary Amid Delays: What Shareholders Must Know

Key Highlights:

• Revised Sale Price: Bromat Holdings will sell its entire 60% stake (60,000 shares) in Dining Haus Pte Ltd (DHPL) to Mr. Chia Shu Sian for S\$1 million.
• Payment Terms: An initial S\$200,000 was paid at the signing of the original share purchase agreement (SPA). The remaining S\$800,000 will be paid in three instalments, with the final payment due by 1 December 2025.
• Revised Completion Date: The official transfer of shares (“Revised Completion Date”) will occur on 1 September 2025.
• Default Clause: If the buyer defaults on the new payment schedule, the entire outstanding balance of S\$1 million (less any amounts paid) becomes immediately due, plus 6% interest per annum, compounded daily.
• Legal Costs: Both parties will bear their own legal costs associated with this Settlement Agreement.
• Settlement Finality: The new settlement is full and final for all claims connected to the original SPA.

Detailed Report for Investors

Bromat Holdings Ltd. has provided a significant update regarding the proposed disposal of its 60% stake in subsidiary Dining Haus Pte Ltd (DHPL). Following the lapse of the original conditions for the sale, the company has renegotiated the terms with the buyer, Mr. Chia Shu Sian, resulting in a reduced sale consideration and a revised payment schedule.

Under the original agreement, the company was expecting a higher consideration, but due to unspecified reasons leading to the expiry of the “Unconditional Date,” a new settlement was reached. The agreed consideration is now S\$1 million, of which S\$200,000 was already paid at the SPA signing. The outstanding S\$800,000 will be paid in three instalments, with the final payment deadline set for 1 December 2025. The transaction will officially complete on 1 September 2025.

Significantly, the new arrangement includes a strict default clause: should the buyer fail to make payments as scheduled, the full outstanding balance (S\$1 million minus any payments made) will become immediately due, along with a hefty 6% annual interest rate, compounded daily. This clause provides some security for Bromat Holdings, but also signals the company’s urgency to close the transaction, possibly reflecting challenges in realizing the original deal terms.

Both Bromat Holdings and the buyer will cover their own legal costs. Importantly, this settlement means both parties waive all other claims related to the previous SPA, providing finality and reducing the risk of future disputes.

What Investors Need to Watch

• Price Sensitivity: The reduction in sale price (from an undisclosed original amount to S\$1 million) and the delayed payment schedule could signal cash flow or negotiation difficulties, which may affect investor confidence and share price.
• Default Risk: The inclusion of a steep default interest suggests the company is wary of potential payment issues. Investors should monitor whether payments are made on schedule.
• Ongoing Updates: Bromat Holdings has committed to providing further updates as material developments occur. Shareholders should stay alert for additional announcements that could impact the company’s financial position or share value.
• Professional Advice Recommended: The company advises shareholders to exercise caution and consult professional advisers before making any trading decisions in light of this news.

SEO Summary: Bromat Holdings Revises Dining Haus Sale Terms Amid Delays—Key Payment Dates, Default Risks, and What It Means for Shareholders

Bottom Line: The revised sale terms for Dining Haus Pte Ltd represent a major update for Bromat Holdings shareholders, introducing both lower proceeds and a more extended, risk-managed payment structure. The outcome of this deal and the buyer’s ability to meet the new deadlines could have a direct impact on Bromat’s financial outlook and share price volatility in the coming months.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Investors should perform their own due diligence and consult with professional advisers before making any investment decisions. The author and publisher accept no liability for any actions taken based on the information provided herein.

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