SINGAPORE: ST Group Food Industries Holdings Ltd. has disposed of three indirect subsidiaries operating under the Gong Cha brand in the United Kingdom, citing ongoing losses and a strategic shift toward franchising and supply chain operations.
The disposal, completed through ST Group’s indirect subsidiary GCTea Ltd., transfers ownership of GCTea Outlets Ltd., GCTea Outlets 2 Ltd., and GCTea DKJV Ltd. to former company employee Lam Kei Kwan for a nominal consideration. The companies have been loss-making since inception, with a net liabilities position of A$1.34 million as of Dec. 31, 2024.
ST Group said the move aligns with its broader restructuring plan, which includes liquidating two additional UK entities and terminating its master franchising agreement by July. The company intends to exit all UK operations once the transition is complete.
“This disposal allows us to refocus on generating revenue through franchise rights and supply chain sales rather than direct operations,” the company said in a statement.
SGX-ST has waived the requirement for shareholder approval, following ST Group’s submission of irrevocable undertakings from shareholders collectively holding more than 50% of issued shares. The disposal will be ratified at the company’s next annual general meeting.
ST Group expects a loss on disposal of approximately A$442,298, largely due to deconsolidation effects. The company maintains that the move will improve its financial position and shareholder value.