Jumbo's indirect wholly-owned subsidiary will subscribe for 6,000 shares for $6,000 into the JVC.
Jumbo Group says it will set up a joint venture company (JVC) with The Art of Mee Pok to own and operate food and beverage (F&B) outlets focused on selling Teochew fishball and minced meat noodles.
The JVC will be named JLL F&B Services Pte Ltd.
Jumbo Group’s indirect wholly-owned subsidiary, Jumbo Group of Restaurants signed the joint venture agreement (JVA) with The Art of Mee Pok on Jan 24.
Under the JVA, the JVC will sell the Teochew fishball and minced meat noodles under the Jalan Tua Kong Lau Lim (in English and in Mandarin), The Art of Mee Pok, as well as Lau Lim Mee Pok brands (the JTKLL tradename) in Singapore.
The JVC was incorporated on Dec 9, 2020, with an initial issued share capital of $2 comprising two ordinary shares.
Through the agreement, Jumbo Group of Restaurants and The Art of Mee Pok will each subscribe for 6,000 and 3,998 ordinary shares for a total consideration of $6,000 and $3,998 respectively.
Following that, Jumbo Group of Restaurants will hold a 60% stake, while The Art of Mee Pok will hold a 40% stake in the JVC, which will have a share capital of $10,000.
The subscription will be made on Jan 31 or no later than March 31.
The JVC will hold a master license granted by The Art of Mee Pok to operate F&B outlets under the JTKLL tradename and Lao Lim (JTKLL trademark) in Singapore.
It will also be granted a unit license by Jumbo Group of Restaurants to operate a Teochew pao fan outlet under the Chao Ting tradename at 308 Bedok Road.
The Art of Mee Pok was incorporated on Nov 9, 2004, to operate cafes and coffeehouses. It holds the registered JTKLL trademark in Singapore and Indonesia.
Its directors and shareholders are Lim Kim Heong and Sim Poh Tiam.
The Art of Mee Pok was founded in 1993 by its main chef, Lim. He was joined by Sim. Together, they expanded the business to meet the growing demands of their customers, according to the statement on Jan 24.
The Art of Mee Pok is not related to the directors or controlling shareholders of Jumbo. The business, together with Lim and Sim, do not own any shares in Jumbo.
The Art of Mee Pok has been operating F&B outlets under the JTKLL tradename and trademark selling Teochew fishball and minced meat noodles, dumplings, carrot cakes and other side dishes at 306 and 308 Bedok.
It also has an outlet in Queen Street. Both the Bedok and Queen Street outlets are not part of the JVC.
Jumbo’s investment in the JVC will be funded by internal resources.
Shares in Jumbo closed 0.5 cent higher or 1.4% up at 37 cents on Jan 22.