KOUFU subsidiary Super Tea has entered into a joint venture to develop, manage and operate food and beverage outlets under the proprietary marks of Super Tea in Indonesia, it said on Wednesday.
Super Tea will use 5.5 billion rupiah (S$540,000) to subscribe for 55 per cent of the equity interest in the joint venture, with partner PT Berkah Cipta Adirasa taking up the remaining 45 per cent stake.
The joint-venture company will be incorporated in Indonesia with a total paid-up share capital of 10 billion rupiah and its business will include granting sub-licences to other parties to operate more outlets within Indonesia under franchise agreements, Koufu said.
PT Berkah Cipta Adirasa is an investment-holding company jointly owned by Felix Lokanata, Tono Bong, Henry Saputra and Ferry Saputra.
PT Berkah Cipta Adirasa is entitled to acquire more shares from Super Tea constituting up to 15 per cent of the total share capital of the joint-venture company within three years, subject to certain milestones being achieved.
Koufu said that the joint venture presents it with an opportunity and an effective platform to expand its business of operating food and beverage outlets in Indonesia.
"The joint venture is in line with the group's long-term objectives of delivering growth and enhancing its revenue stream. The group is of the view that this strategic addition will be largely beneficial," it said.
Koufu shares closed flat at S$0.785 on Wednesday.