KUALA LUMPUR (July 25): Pineapple Resources Bhd, which is buying the Thai Hou Sek restaurant operations at Pavilion Kuala Lumpur here from THS Restaurants Sdn Bhd, says the RM415,334.11 purchase consideration is based on the seller's unaudited net assets of RM415,334.11 as at June 30, 2019.

In a statement to Bursa Malaysia today, Pineapple said that upon execution of the sale and purchase agreement (SPA), full payment of the purchase consideration has been paid to THS.

"The acquisition is expected to complete by end of July 2019 upon the completion of the novation of the tenancy with the landlord as stated in paragraph 3.2 of the announcement dated July 22, 2019," IT products distributor said.

Pineapple said this in response to Bursa's queries on the proposed acquisition of Thai Hou Sek restaurant operations at Pavilion Kuala Lumpur.

Pineapple had initially announced the proposed acquisition on Monday (July 22), when the group said its wholly-owned subsidiary Agva Marketing Malaysia Sdn Bhd had on that day entered into the SPA with THS with a view of setting up a new food and beverage (F&B) business outlet at Pavilion Kuala Lumpur.

THS has agreed to sell and Agva has agreed to buy the F&B assets including equipment and furniture, said Pineapple, adding that its wholly-owned subsidiary Pineapple Computer Systems Sdn Bhd owns a 22.5% stake in THS.

"The acquisition will enable Agva to venture into a new F&B business outlet which is expected to contribute positively to the financial performance of Agva and the Pineapple Group in the long run. The funding for the acquisition will be from [internally] generated funds.

"The acquisition will enable Agva to quickly set up and carry on the business of a restaurant at the same location. The acquisition is not expected to materially change the risks of the company's business as the group would still be exposed to the same business operation, financial and investment risk as a result of the SPA," Pineapple said.