Koh Brothers announced the acquisition of the remaining 40% shareholdings in VNT Travel Pte Ltd (“VNT”) from Vietnamtourism Ho Chi Minh City Joint Stock Company (“Vietnamtourism”) for a purchase price of S$1.00.

VNT has net tangible liabilities of S$116,000 and owes Vietnamtourism circa US$52,955. However, Vietnamtourism has agreed to waive off US$17,955 of the debt and Koh Brothers has only to repay the remaining US$35,000 after acquiring VNT.

Prior to the voluntary liquidation of Vina Viet-Sing Ltd (“VVS”) last week, VNT has been collaborating with VVS on travel service arrangement to Vietnam. We spoke to Koh Brothers management and understand that going forward, they will look into other business venture for VNT.

We reckon that impact to the Group’s earnings and net tangible assets to be immaterial.

Maintain HOLD and target price of S$0.15. We continue to value Koh Brothers with sum-of-the-parts given its diversified business structure. We maintain our target price of S$0.15 and HOLD recommendation.