It has opted to continue its licensing arrangement to reduce costs.
Singapore-listed Koufu Group is selling its stake in the Indonesian joint venture company PT Super Tea Indonesia, and will instead continue its licensing arrangement with Supertea Indonesia, a bourse filing revealed.
As part of the licensing arrangement, the group will collect licence fees, royalties and marketing fees. Koufu’s Executive Chairman and CEO Pang Lim explained that the divestment was made to reduce costs and to streamline its operations.
“The licensing arrangement with Supertea Indonesia will similarly enable us to align our overseas R&B Tea business as a franchise model, which we view as a more effective and beneficial arrangement in this current business climate, in light of COVID-19 outbreak and travel restrictions,” Lim said.
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