Food Empire to issue US$40m redeemable exchangeable note to Ikhlas Capital

Proceeds from the notes issuance will go to SEA expansions.

Food Empire Holdings will issue a Redeemable Exchangeable Note (REN) of up to US$40m to ASEAN private equity fund manager Ikhlas Capital.

“The investment will be made into a special purpose vehicle wholly owned by [Food Empire] that will hold or possess the option to hold a portfolio of business operations, including the company’s Southeast Asian and South Asian business,” Food Empire said.

Meanwhile, Ikhlas Capital will inject an initial capital of US$40 million into the SPV for this strategic partnership via a five-year REN with a 5.5% annual interest rate, based on terms to be finalised in a definitive agreement. 

Ikhlas Capital will have the right, but not the obligation, to exchange the REN for new shares of the Food Empire at a share price of $1.09 per share. 

Food Empire will list the new shares on the Singapore Exchange Securities Trading Limited (SGX-ST) and rank pari passu with its existing issued shares.

Food Empire will use the proceeds from its note issuance and strategic partnership with Ikhlas Capital to drive capital expenditures, mergers, and acquisitions in Southeast and South Asia.