Ascent Bridge Limited (SGX:AWG) entered into a non-binding letter of intent to acquire Baijiu business in China from Dong Ying Quan Li Quan Wai International Trading Co Ltd on December 8, 2023. The valuation of the acquisition shall not exceed SGD 7 million. To improve the presence of Ascent Bridge in the baijiu industry, the parties have agreed in principle to set up a Joint Venture Company, Ascent Bridge (Hainan) Co Ltd to facilitate Ascent Bridge?s entry into the baijiu market in Mainland China, Ascent Bridge (Hainan) shall issue 49% shares to Dong Ying Quan Li Quan Wai.

Dong Ying Quan Li Quan Wai shall ensure to maintain its global distribution rights of the product as a precedent condition of the acquisition. The Letter of Intent is valid for 3 months upon signing of the letter and either party may cease negotiations and discussions at any point in time. Ascent Bridge Limited (SGX:AWG) and its subsidiary Ascent Bridge Singapore Pte Ltd has entered into joint venture agreement with Dong Ying Quan Li Quan Wai International Trading Co Ltd on February 7, 2024.

Ascent Bridge Limited (SGX:AWG) will acquire 31% stake and Ascent Bridge Singapore Pte Ltd will acquire 20% stake in Baijiu business in China as part of the agreement.