Sakae Holdings Announces Proposed Acquisition of Cooking Art Industries Pte Ltd for S\$741,000

Key Highlights

• Sakae Holdings Ltd., through its wholly-owned subsidiary Apex-Pal Investment Pte. Ltd., has entered into a sale and purchase agreement to acquire 100% of Cooking Art Industries Pte Ltd.
• The total consideration for the acquisition is S\$741,000, to be paid fully in cash in three tranches.
• The target company, Cooking Art Industries, is a well-established Singapore-based supplier of Nonya Kueh and pastries, incorporated since 1990.
• The acquisition is expected to be completed by 2 April 2026, and will be funded through internal resources and/or external borrowings.
• The acquisition is expected to bring operational synergies and expand Sakae’s product offerings, particularly in the desserts and related industries.
• A separate one-year service agreement has also been signed with one of the vendors, Ms. Esther Tan Bin Kheng, likely aiming to ensure a smooth transition and continuity of business expertise.

Details of the Acquisition

• The consideration was determined at arm’s length, considering the net asset value of Cooking Art Industries based on unaudited financial statements as at 31 December 2025, the company’s business experience, technical expertise, and anticipated operational synergies.
• The transaction will not involve the issuance of any new equity securities by Sakae Holdings, and no material conditions are attached to the acquisition.
• The vendors—Mr. David Sim Seow Kee, Ms. Esther Tan Bin Kheng, and Ms. Shen Feilin, Ariela Claire—are not related to any directors or major shareholders of Sakae Holdings, and hold no shares in Sakae Holdings as of the announcement date.

Financial Impact and Shareholder-Relevant Information

• Net Tangible Assets (NTA): On a pro forma basis, post-acquisition NTA per share would increase slightly from 39.91 cents to 40.00 cents.
• Earnings Per Share (EPS): The acquisition is expected to marginally reduce the loss per share for FY2025 from 2.90 cents to 2.85 cents, based on the Group’s and target’s latest financials.
• Overall, the acquisition is not expected to have a material impact on Sakae Holdings’ earnings per share or net tangible assets per share for the financial year ending 30 June 2026.

Regulatory and Transactional Significance

• Under SGX Listing Manual Rule 1006, the acquisition qualifies as a “disclosable transaction” as the relative figure for the consideration (5.9% of Sakae’s market cap) exceeds 5% but does not exceed 20%.
• The net profit attributable to the acquired assets is approximately S\$65,000, compared to Sakae’s FY2025 net loss of S\$4.03 million.
• No equity securities will be issued, and the vendors are not related parties to Sakae Holdings.
• The completion date is set for 2 April 2026, subject to any mutually agreed changes in writing.

Potential Price-Sensitive Issues for Shareholders

• The acquisition signals Sakae Holdings’ strategy to diversify and expand into the desserts and pastries market, potentially opening new revenue streams and improving long-term profitability.
• The transaction is unlikely to cause significant immediate changes to the company’s financial position, but the strategic rationale and expected operational synergies could enhance shareholder value if the integration is successful.
• There are no material conflicts of interest or related party transactions involved.
• Investors should note the small but positive impact on NTA and EPS, as well as the company’s intent to fund the acquisition via internal resources and/or borrowings, which should not result in dilution for existing shareholders.
• The document notes that a copy of the agreement will be available for inspection at Sakae Holdings’ registered office for three months from the announcement date, providing transparency for interested parties.

Conclusion

This acquisition marks a strategic step for Sakae Holdings in broadening its business scope into complementary food segments. While the immediate financial impact is modest, shareholders should monitor the future operational contributions of Cooking Art Industries and the realization of expected synergies. The transaction’s “disclosable” status under SGX guidelines, combined with the company’s continued efforts to seek new growth avenues, could be viewed positively by the market, potentially influencing share price sentiment.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors are advised to review the full announcement and consult their financial advisor before making any investment decisions. The author and publisher accept no liability for any losses arising from reliance on this information.

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