OUE buys Indonesia’s Maxx coffee chain
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Singapore investment firm OUE has acquired a majority stake in the parent of Indonesia’s Maxx coffee chain, which also operates in Singapore.
According to the agreement, OUE’s wholly-owned subsidiary Oddish Ventures will buy an 88.43-per-cent stake, worth US$23.1 million from two companies – Inti Anugerah Pratama and Ciptadana Capital – which own 45.64 percent and 42.79 percent of the Maxx Coffee Prima’s issued shares respectively.
OUE reported that the acquisition was valued based on various factors, including the high barrier of entry into the Indonesia food-and-beverage market, the opportunity for additional revenue stream through franchising, and Maxx Coffee’s access to prime retail locations in Indonesia.
With the acquisition, OUE hopes to scale up and optimize its existing food-and-beverage portfolio, the company said in a statement.
Founded in 2015, Maxx Coffee has more than 75 outlets in Indonesia and Singapore.
Questions & Answers
Q.What is the primary reason OUE stated for valuing the acquisition at this price?
What is the primary reason OUE stated for valuing the acquisition at this price?
OUE based the acquisition value on several factors. These included the high barrier to entry in the Indonesian food-and-beverage market, the chance for extra revenue from franchising, and Maxx Coffee's access to good retail locations in Indonesia.
Q.Which specific companies are selling their stakes in Maxx Coffee Prima to OUE?
Which specific companies are selling their stakes in Maxx Coffee Prima to OUE?
The companies selling their stakes to Oddish Ventures, OUE's subsidiary, are Inti Anugerah Pratama and Ciptadana Capital. They currently own 45.64 percent and 42.79 percent of Maxx Coffee Prima's issued shares respectively.
Q.What is OUE's stated goal for its own business operations with this acquisition?
What is OUE's stated goal for its own business operations with this acquisition?
OUE aims to scale up and optimise its existing food-and-beverage portfolio through this acquisition. The company hopes to improve its current F&B operations by integrating Maxx Coffee.
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