Neo Group
Neo Group website

Food catering firm Neo Group said it entered into an exclusive negotiation agreement to buy shares in ER Marketing and Ever Rich.

Under the agreement, the potential vendors and the two companies have agreed to provide Neo Group with an exclusive period from September 21, 2017 to August 31, 2018 for negotiations relating to the proposed acquisitions, it said in a regulatory filing on Thursday.

The agreement, however, will terminate when a definitive agreement in relation to the proposed acquisition is signed or when the exclusive period expires, whichever is earlier.

Neo Group did not disclose the financial details of the agreement.

ER Marketing imports and exports food products such as raw condiments, fruits and vegetables while Ever Rich owns and operates warehouses and cold rooms for storage of food products.

Shares in Neo Group fell 0.7 percent to S$0.705 on the Singapore Exchange. The stock has gained 14 percent so far this year.