Will BreadTalk's S$80 mil acquisition of Food Junction be too hard to swallow?

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SINGAPORE (Sept 3): BreadTalk Group is licking its chops at the acquisition of Food Junction Management, which would make BreadTalk the third-largest foodcourt operator in Singapore behind NTUC Enterprise and Koufu.

But some market watchers are finding the S$80 million price tag hard to swallow.

For starters, they note that Food Junction's net tangible assets are valued at only about S$12.3 million.

“Valuation seems too expensive at a price-to-book ratio (P/B) of close to 6.7 times, especially when compared to peers like Koufu and Kimly, which are trading at...(click on link for full story on theedgesingapore.com)