NTUC Enterprise affirms commitment to expand social footprint following clearance of proposed acquisition of Kopitiam acquisition by the Competition and Consumer Commission of Singapore

Singapore, 20 December 2018 – NTUC Enterprise Co-operative Limited (“NTUC Enterprise”) filed a notification with the Competition and Consumer Commission of Singapore (“CCCS”) regarding the proposed acquisition of Kopitiam Investment Pte Ltd (“Kopitiam”), which was accepted by the CCCS on 28 September 2018. We have received a decision from the CCCS that the proposed acquisition, if carried into effect, will not infringe the section 54 prohibition of the Competition Act (Cap. 50B). This means that the proposed acquisition will not lead to a substantial lessening of competition within the relevant markets in Singapore.

NTUC Enterprise, the holding entity and single largest shareholder of the NTUC social enterprises, has previously shared that through this acquisition, we aim to expand our social footprint and leverage synergies within the group so as to create better experiences for customers and better opportunities for employees. The combined footprint of NTUC Foodfare and Kopitiam will strengthen our ability to provide affordable cooked food, thereby furthering our social mission of moderating the cost of living.

For example, NTUC Enterprise is working towards extending some existing initiatives, such as Rice Garden¹ and specially priced Breakfast Set², at various consumer touchpoints. Building on our ongoing efforts to moderate prices and provide consumers with more affordable cooked food, NTUC Enterprise is also looking at offering coffee and tea at reduced prices to all. Details will be announced in the first quarter of 2019.

NTUC Enterprise and Kopitiam will continue to work towards the completion of the proposed acquisition, which is expected in January 2019. Upon completion, NTUC Foodfare and Kopitiam will continue to operate separately with their respective management teams and employees remaining in place. Business will continue as usual and Kopitiam Loyalty Card users can continue to use their Kopitiam Card at all Kopitiam outlets. Meanwhile, both entities will work together to align best practices, as well as leverage mutual capabilities to seek out common opportunities for synergies in the long term.

“We welcome the decision taken by the CCCS on our proposed acquisition of Kopitiam. NTUC Enterprise will continue to work as a group to fulfill our social mission of providing quality essential services and products. We moderate prices with the aim to encourage the market to stay competitively priced and so ensure good value every day for the Singapore community,” said Mr Kee Teck Koon, Executive Director, NTUC Enterprise. “In particular, with the combined footprint of NTUC Foodfare and Kopitiam, we will be in a better position to make quality cooked food affordable and more widely accessible to all.”

## END ##

¹Rice Garden is NTUC Foodfare’s social outreach programme designed with lower-income consumers in mind. Rice Garden offers a mixed rice set comprising one meat and two vegetable dishes priced from $1.50 for ComCare and NTUC Foodfare Privilege cardholders; from $2.00 for senior citizens, students, full-time National Servicemen and NTUC Union members; from $2.70 for the general public.

²The NTUC Breakfast Set, available at NTUC Foodfare coffee shops, food courts, Bukit Panjang hawker centre, Kampung Admiralty hawker centre and Pasir Ris Central hawker centre, comprises a cup of coffee/tea, two soft boiled eggs and one kaya butter toast. It is priced at $1.80 for NTUC Union members and $2.20 for the general public.