For MYR 7.6 million ($1.69 million), the Malaysian digital media company Catcha Digital Berhad is purchasing a 70% equity stake in Tastefully Malaysia Sdn Bhd in order to enter the consumer food expo market.
In a statement released on Thursday, Catcha Digital announced that it had reached a share sale agreement with Tastefully. The strategic acquisition reflects the company’s goal to keep expanding its integrated digital media business in order to offer its clientele omnichannel online-to-offline advertising solutions.
It is anticipated that this deal will increase Catcha Digital’s future profits.
It should be mentioned that the financial consideration is due in four installments over a period of 36 months.
The achievement of the expected profit after tax (PAT) over the 36-month period following the sale and purchase date of the shares is linked to it. The expected PAT for calendar year 2024 is MYR 500,000 ($110,988), MYR 1.1 million ($240,000), MYR 1.4 million ($310,000), and MYR 1.6 million ($360,000), divided into the 12 months following completion, the 13–24 month period, and the 25–36 month period, respectively.
One of Malaysia’s top consumer food expo companies, Tastefully hosts prestigious events all over the country, including at important locations like Sabah International Convention Center, Sunway Pyramid Convention Center, Mid Valley Exhibition Center (KL), and Mid Valley Southkey Exhibition Centre (Johor).
Over the previous 13 years, the company has organized over 100 expos with over 1.2 million yearly attendees and 21,000 exhibitor partnerships, demonstrating its considerable popularity among food and beverage (F&B) brands.
Along with collaborating with top government organizations like Lembaga Koko Malaysia, the network’s flagship events have forged solid ties with well-known F&B companies like Beacon Mart, Guardian, and numerous more.
Significant cross-selling opportunities exist between Tastefully’s audience and Catcha Digital’s current advertising clientele as a result of the acquisition.
Tastefully may use Catcha Digital’s extensive digital advertising capabilities and online audiences to optimize its advertising services to its clientele, which predominantly consists of F&B brands, while Catcha Digital will be able to provide its clients with Tastefully’s in-person advertising solutions.
Both businesses should see faster growth as a result of this synergistic relationship.
“The F&B industry in Malaysia represents one of the most dynamic sectors in terms of consumer engagement and brand building,
“Through this acquisition, we’re combining Tastefully’s proven expertise in creating high-impact consumer events with Catcha Digital’s digital capabilities,” said Patrick
Grove, Chairman of Catcha Digital.
