Kimly Pulls Back $16 Million Deal Amid Regulatory Scrutiny
What Happened?
Singapore coffee‑shop chain Kimly Limited decided to drop its $16 million acquisition of drinks producer Asian Story Corporation (ASC). The move comes as big‑name regulators are poking around in the company’s books.
Why the Pause?
- Kimly’s shares were voluntarily suspended on Nov 27 while the company festers over says from the Commercial Affairs Department (CAD) and the Monetary Authority of Singapore.
- The authorities are hunting for paperwork that might hint at a dip in the Securities and Futures Act. In particular, they want to see Kimly’s IPO files, the ASC deal papers, and all on‑hand corporate secretarial records back to the start of 2016.
- They’ve also zoomed in on the gadgets used by Kimly’s top brass – Chairman Lim Hee Liat, Director Chia Cher Khiang, and former Non‑Executive Ong Eng Sing. The trio was interviewed and handed over travel documents.
ASC’s Side of the Story
ASC isn’t left out of the audit. The company needs to turn over its own corporate secretarial and financial records, and the paperwork related to the July announcement of its supposed takeover.
Kimly’s Own Chops
Kimly said it’ll cooperate fully – no charges yet, so its execs remain in place. But the big news: the acquisition deal is back on the table. In a separate filing, they explained that Pokka Corporation (Singapore) hinted at cutting ties with ASC, so Kimly’s board started raising a can of worms. After a few chats and an assessment of the fallout, they decided the safest route was to unwind the deal completely.
Financial Remix
Kimly has already received a $12 million lump‑sum repayment from ASC. They’ll chase the rest of the money over the next three years. The company runs roughly 70 food outlets and 130 stalls across the island.
Why the Market Sips Suspended Shares
On the same day the suspension was called off, Kimly told shareholders there would be a “brief pause” while it fleshed out details about the recent deal. Rumors swirled that the freeze could link back to the ASC drama.
ASC’s Bottom Line
Without the acquisition in place, ASC hasn’t merged its latest financial results into Kimly’s unaudited statements. ASC reported a 2.1 % net profit boost to $21.9 million for the year ending Sept 30, and a 5.3 % revenue jump to $202.2 million.
Wrap‑Up
Kimly’s “Netflix‑style” exit shows how quickly corporate plans can flip when regulators step in. Stay tuned – the next episode may yet bring more twists to Singapore’s coffee and beverage scene.
