OUE acquires majority stake in Indonesia-based coffee chain operator

Maxx Coffee will become an indirect subsidiary of the group.

Oddish Ventures, an indirect wholly-owned subsidiary OUE Limited, has entered into a share purchase agreement to acquire 88.43% of Indonesian coffee chain PT Maxx Coffee Prima (PT MCP) for $23.1m (IDR229b), a bourse filing revealed.

This amounts to 229.4 million ordinary shares for 10 cents (IDR1000) apiece. Shares will be bought from PT Inti Anugerah Pratama (PT IAP) and PT Ciptadana Capital (PT CC), which holds 45.64% and 42.79% of the total issued share capital of PT MCP, respectively.

The net asset value of the MCP Shares as at 31 December 2019 is approximately negative $15.2m (negative IDR151b).

OUE further stated that the consideration was based on various factors, such as high barrier of entry into the Indonesia food and beverage market, additional revenue stream through franchising and access to prime retail locations in Indonesia.

PT MCP will become an indirect subsidiary of OUE. PT MCP operates the Maxx coffee chain and currently has more than 75 outlets in Indonesia and Singapore. The acquisition is said to be part of the group’s plan to scale up and optimise its existing food and beverage portfolio.