The Motley Fool Singapore
Did BreadTalk Overpay for Food Junction?
Last week BreadTalk Group Limited (SGX: CTN) announced it would open its wallet to shell out S$80 million for Food Junction. My colleague Royston described some of the salient points of the acquisition in an earlier article. In this article, I’ll take a deeper look at whether BreadTalk is overpaying for the food court operator. Compared with previous transactions In 2013, Auric Group successfully privatised Food Junction (which was a listed company back then) by buying the remaining 39% stake in Food Junction that it did not already own. At that time Auric Group made an offer valuing Food Junction at S$30 million. In 2017, Lippo’s Riady family successfully privatised Auric Pacific Group, valuing the company at S$48.3 million. Auric Pacific Group, besides owning Food