Neo Group has acquired a 51% stake in Ye Liang How Catering Service, an earnings-accretive move, for S$4.4 million.

The strategy of growth via acquisitions was mentioned by Chairman Neo Kah Kiat at the AGM in July: "Every year, I will try to acquire one or two catering companies. The targets would be 'smaller' ones for now and we take a selective and cautious approach towards the bigger M&As."


NeoKahKiat vimeoNeo Kah Kiat, Chairman and CEO of Neo Group. Vimeo screenshot
With roots that trace back to 1991, How’s Catering has risen to become one of the more renowned food caterers in Singapore that focuses on serving corporate clientele.

How's Catering’s other offerings include catering for thematic and festive events, weddings as well as healthier-choice gourmet spreads.

HowsPhoto: Company

The acquisition will be funded by a combination of cash amounting approximately S$3.6 million and the issuance of 877,193 new shares at S$0.57 per share.

Stock price 


52-week range

49 - 72c

PE (ttm)


Market cap

S$79 m

Shares outstanding

146 m



1-yr return


Source: Bloomberg

Additionally, an earn-out consideration of approximately S$0.3 million will be payable, if How’s Catering’s aggregate consolidated net profit before tax for the financial period from 1 April 2018 to 31 March 2019, financial year ended 31 March 2020 and financial year ended 31 March 2021 is more than S$4.0 million.

Mr. Neo Kah Kiat, Founder, Chairman and CEO of Neo Group Limited, said: “This acquisition allows us to expand our customer base as well as promote cross-selling opportunities.

"Furthermore, our extensive procurement and logistics network should yield a number of operational synergies and drive positive impact to our financial performance.

"As our food catering business remains the main growth driver, we are confident that the expertise and track record of How’s Catering’s experienced management team should propel us to strengthen our current suite of catering brands. This will also enable us to build a steady platform to pursue inorganic opportunities for food catering as well as our other business segments in the future.

"That said, we will continue to adopt a prudent and disciplined approach when prospecting for potential targets with the objective of driving bottom-line growth.’’

You may also be interested in:

You have no rights to post comments

Counter NameLastChange
AEM Holdings2.380-0.050
Best World2.480-0.010
Boustead Singapore0.945-
Broadway Ind0.133-0.001
China Aviation Oil (S)0.915-0.010
China Sunsine0.400-0.005
Delfi Limited0.910-0.005
Food Empire1.320-0.010
Fortress Minerals0.310-0.010
Geo Energy Res0.3200.005
Hong Leong Finance2.480-0.010
Hongkong Land (USD)2.870-0.080
ISDN Holdings0.295-0.005
IX Biopharma0.043-0.003
KSH Holdings0.250-
Leader Env0.048-0.001
Ley Choon0.042-0.002
Marco Polo Marine0.068-
Mermaid Maritime0.143-0.002
Nordic Group0.315-
Oxley Holdings0.088-0.001
REX International0.142-0.003
Southern Alliance Mining0.475-0.010
Straco Corp.0.485-0.010
Sunpower Group0.210-0.005
The Trendlines0.074-
Totm Technologies0.021-0.003
Uni-Asia Group0.810-0.020
Wilmar Intl3.380-0.110
Yangzijiang Shipbldg1.8100.030

We have 1144 guests and no members online

rss_2 NextInsight - Latest News