Catcha Digital Acquires 70% Stake in Tastefully to Enter Consumer Food Expo Sector

Catcha Digital Berhad (“Catcha Digital”) today announced that it has entered into a share sale agreement to acquire a 70% equity interest in Tastefully Malaysia Sdn Bhd (“Tastefully”) for a cash consideration of RM7.6 million.

The cash consideration is payable in 4 tranches across 36 months and 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 (“Completion”) date, broken down into expected PAT of RM0.5 million, RM1.1 million, RM1.4 million and RM1.6 million 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.

This 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.

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 Centre (KL), Mid Valley Southkey Exhibition Centre (Johor), Sunway Pyramid Convention Centre, and Sabah International Convention Centre.

The company has gained significant traction among food and beverage (“F&B”) brands, organising 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.

What particularly attracted us 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,” said Patrick Grove, Chairman of Catcha Digital.

“Over the past 13 years, we’ve built Tastefully into the go-to platform for F&B brands to connect directly with Malaysian consumers. By joining the Catcha Digital family, we can now offer our exhibitors an integrated advertising solution that spans both physical and digital touchpoints.

We’re particularly excited about leveraging Catcha Digital’s digital expertise to enhance our event experience and advertising offerings to our clientele. We are very excited to embark on this partnership with Catcha Digital to take our business to the take level,” said Esther Fong, CEO of Tastefully.

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 RM1 trillion according to Google, Temasek, and Bain & Company’s 2023 SEA e-Conomy report. The Group continues to seek strategic investments and proposed acquisitions that complement its existing segments while expanding its presence in the digital economy beyond digital media.