Proposed Joint Venture between Mr. Tan Chin Long, Kee Song Holdings Pte. Ltd., Sinmah Holdings (S) Pte. Ltd., Tong Huat Poultry Processing Factory Pte. Ltd. and Tysan Food Pte. Ltd.

Notifying Parties:

The parties to the agreement are:

1. Mr. Tan Chin Long;

2. Kee Song Holdings Pte. Ltd.;

3. Sinmah Holdings (S) Pte. Ltd.;

4. Tong Huat Poultry Processing Factory Pte Ltd; and

5. Tysan Food Pte Ltd.

Notifying Date:

12 September 2017

Summary of transaction:

Note: The summary information posted on this Public Register on the nature and objectives is provided by the Applicants. CCS makes no representation as to the accuracy or veracity of the summary information posted.

The parties to the agreement are Mr. Tan Chin Long (“TCL”), Kee Song Holdings Pte. Ltd.(“KSH”), Sinmah Holdings (S) Pte. Ltd. (“Sinmah”), Tong Huat Poultry Processing Factory Pte Ltd (“Tong Huat”) and Tysan Food Pte Ltd (“Tysan”) (collectively referred to as the “Applicants” and each as an “Applicant”).

At present, all of the Applicants are in the business of trading in or distributing fresh chicken products in Singapore and each Applicant (together with its respective affiliates) operates its business independently.

The Applicants intend to establish a joint venture company, Singapore Poultry Hub Pte. Ltd. (“SPH”), which will undertake slaughtering services for and on behalf of each Applicant (or its respective affiliates). As part of the proposed transaction, the Applicants have entered into a shareholders agreement which will govern their relationship as shareholders as well as the terms of their investment in SPH (the “Proposed Transaction”).

The Applicants have submitted that it is foreseen that the Proposed Transaction will achieve greater economies of scale with respect to the slaughtering of poultry for the eventual sale of fresh poultry to consumers in Singapore or frozen poultry products to consumers outside of Singapore as well as other benefits including the alleviation of land scarcity in Singapore, increasing worker productivity and maintaining and enhancing food security in Singapore.

According to the Applicants, the Proposed Transaction has received the support of various governmental agencies. For example, the Applicants are currently in discussion with Jurong Town Corporation (“JTC”) to lease space for SPH’s slaughtering services in JTC’s Poultry Processing Hub (which is currently being constructed). Upon the completion of JTC’s Poultry Processing Hub and the establishment of SPH’s operations a poultry slaughtering facility, SPH will obtain a slaughterhouse licence from the Agri-food and Veterinary Authority of Singapore (“AVA”).

SPH intends to commence operations of its poultry slaughtering facility by mid-2019.

The relevant service involved in the Proposed Transaction is the provision of slaughtering services which comprises the following processes: killing and bleeding; scalding and de-feathering; evisceration; inspection of eviscerated carcasses; cooling of carcasses; and tagging of dressed poultry. All poultry slaughter houses in Singapore are regulated by AVA.

Decision:

CCCS has approved the Joint Ventire, conditional upon the implementation of and compliance with the Commitments by the Applicants.

Decision Date:

29 June 2018

Read media release.

Read the Grounds of Decision, including Annex A - Commitments.