QAF

[ngcheeki]

The indicative aggregate purchase price for the Sale Shares is to be satisfied entirely in cash and, asat the date hereof, is estimated at approximately A$107.9 million (equivalent to approximately S$110.3million) (the "Indicative Purchase Price"). Shareholder loans extended by the QAF Group to thePrimary Production business (amounting to approximately A$40.0 million (equivalent toapproximately S$40.9 million)) will be fully repaid on completion of the sale. Together with theIndicative Purchase Price, QAF Group will, subject to and on completion, receive estimated totalcash of A$148.1 million (equivalent to approximately S$151.3 million). Please see Section 4.2 belowfor further information.

Use of proceeds.

The Group is in the process of adding a new line at the Gardenia Malaysia plant in Bukit Kemuning (approximately S$26 million). Plans to expand production facilities at North Luzon in the Philippines are also being reviewed (approximately S$40 million). An additional bread line at the Johor plant (approximately S$30 million) to supply both Malaysia and Singapore markets, and an upgrade to the bread production lines in Singapore (approximately S$20 million) are currently being studied. Total expected capital expenditure for these projects is approximately S$116 million. This is in addition to the significant investments into the Bakery business in Philippines (approximately S$80 million) and Malaysia (approximately S$130 million) that had been made in recent years, as the Group seeks to expand its bakery production capabilities. The disposal of the Primary Production business would enable the Group to focus on and support the growth of the Bakery and Distribution and Warehousing businesses and enable the Group to invest in new business opportunities related to these businesses

https://links.sgx.com/1.0.0/corporate-an...6.2021.pdf