Written by Joseph Chin of theedgemalaysia.com
Thursday, 15 September 2011 13:53
KUALA LUMPUR: Catcha Media Bhd is acquiring a Singapore-based company Haute Groupe Pte Ltd which also sells luxury good online for S$5 million or RM12.34 million.
Catcha Media said on Thursday, Sept 15 it was acquiring the entire equity from Loong Siew Fong and her spouse Low Choong Lang.
Haute Groupe’s core activities are retail of bags, luggage and travel accessories and the wholesale of bags, luggage and travel accessories. It also operates the luxury flash sales website hauteavenue.com and luxury flash sales event business.
Loong and Low had set up Haute Avenue LLP and Haute Republique LLP in November 2009 and July 2010 respectively to sell luxury goods at a discount for a limited time in warehouses/public halls.
On Dec 9, 2010, Haute Groupe was incorporated to assume the seWarehouse Sales business of Haute Avenue LLP and Haute Republique LLP from Loong and Low. In March 2011, it begun operating www.hauteavenue.com.
The terms of the sale and purchase agreement included a profit guarantee, which was calculated on the basis that the unqualified audited net profit after tax for the 12-month period commencing on the first day of the calendar month immediately after the completion date is not less than S$1.5 million.
In a separate statement, Catcha Media director Patrick Grove said: “We are very excited to be working on this proposed acquisition of Hauteavenue.com.
“There is an enormous opportunity to leverage our existing user database of about nine million Malaysians every month and to bring Hauteavenue.com’s product offering to a much larger, regional market.
“We believe we can add significant value to the business almost instantly, in particular by leveraging our Malaysian audience to deploy and market the business rapidly in the Malaysian online market at very little additional cost.”