Malaysian digital media firm Catcha Digital Berhad is acquiring a 70 percent equity interest in Tastefully Malaysia Sdn Bhd for a cash consideration of MYR 7.6 million ($1.69 million) to enter consumer food expo sector.

Catcha Digital said in statement on Thursday that the firm has entered into a share sale agreement with Tastefully, and the strategic acquisition marks Catcha Digital’s ambition to continue growing its integrated digital media business to provide an omnichannel online-to-offline advertising solutions to its client base.

This transaction is expected to contribute positively to Catcha Digital’s earnings in the future.

It is noted that the cash consideration is payable in four tranches across 36 months.

It is tied to the achievement of the expected profit after tax (PAT) over the period of 36 months after completion of the sale and purchase of shares date, broken down into expected PAT of MYR 500,000 ($110,988), MYR 1.1 million ($240,000), MYR 1.4 million ($310,000) and MYR 1.6 million ($360,000) for calendar year 2024, the 12 months after completion, the period from 13 to 24 months after completion, and the period from 25 to 36 months after completion, respectively.

Tastefully is one of the leading consumer food expo companies in Malaysia, operating prominent events across Malaysia, including major venues such as Mid Valley Exhibition Center (KL), Mid Valley Southkey Exhibition Centre (Johor), Sunway Pyramid Convention Center, and Sabah International Convention Center.

The company has gained significant traction among food and beverage (F&B) brands, organizing over 100 expos over the past 13 years with over 1.2 million annual visitors and
21,000 exhibitor relationships.

The network’s flagship events have established strong relationships with major brands in the F&B sector such as Beacon Mart, Guardian, and many others, while partnering with leading government agencies such as Lembaga Koko Malaysia.

The acquisition provides significant cross-selling opportunities between Catcha Digital’s existing advertising client base and Tastefully’s clientele.

Catcha Digital will be able to offer Tastefully’s in person advertising solutions to its clients while Tastefully can leverage on Catcha Digital’s comprehensive digital advertising capabilities and online audiences to enhance its advertising offerings to its clientele primarily F&B brands.

This synergistic relationship is expected to accelerate growth for both entities.

“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.

According to him, what particularly attracted him was Tastefully’s ability to execute large-scale consumer expos events across Malaysia, and their track record of consistently delivering value to both exhibitors and visitors.

“As brands seek more integrated advertising solutions, we believe this combination will create compelling opportunities for our existing advertisers while opening up new avenues for growth,” he added.

Esther Fong, Chief Executive Officer of Tastefully, said that over the past 13 years, the team has built Tastefully into the go-to platform for F&B brands to connect directly with Malaysian consumers.

By joining the Catcha Digital family, she said the firm can now offer its exhibitors an integrated advertising solution that spans both physical and digital touchpoints.

She noted this deal allowed the company to leverage Catcha Digital’s digital expertise to enhance its event experience and advertising offerings to its clientele. and take the business to the take level.

According to the statement, the proposed acquisition aligns with Catcha Digital’s vision to build the leading digital group in ASEAN, targeting the region’s fast-growing digital economy, valued at approximately MYR 1 trillion ($220 billion).

The group said it continues to seek strategic investments and proposed acquisitions that complement its existing segments while expanding its presence in the digital economy beyond digital media.

Catcha Digital is a Malaysia-based investment holding company, focused on operating businesses in the digital media, advertising and software industries.

The company’s wholly-owned subsidiary, iMedia Asia Sdn Bhd, is a digital media company that provides integrated advertising solutions to major brands in the fast-moving consumer goods, retail, property, entertainment and other industries in Malaysia.

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