Struggling BreadTalk acquired by SS Equity
R I L Properties informed the Colombo Stock Exchange (CSE) that the company has transferred all issued shares of FoodBuzz (Pvt.) Ltd., also known as BreadTalk, to SS Equity Holdings (Pvt.) Ltd. for a total purchase consideration of Rs. 245 million on Wednesday (23).
Accordingly, R I L Properties Chief Executive Officer L. Fernando informed the CSE that a total of 108,180,020 ordinary voting shares of FoodBuzz (Pvt.) Ltd. has been transferred to SS Equity Holdings (Pvt.) Ltd. in this process.
The company further clarified that the divestment is in line with the company’s strategic investment activities and helps streamline its resources and business structure.
Previously, R I L Properties PLC disclosed the decision of the director board of its wholly owned subsidiary FoodBuzz (Pvt.) Ltd. to close all BreadTalk outlets from 20 March 2021 in a CSE disclosure.
At the time, the decision to halt operations was influenced by difficult market conditions driven by the Covid-19 pandemic and the Easter Attacks in 2019.
According to local media reports, for the nine-month period ended 31 December 2020, BreadTalk’s losses increased to Rs.86.2 million from a loss of Rs.47.8 million in 2019.