OASIS Harvest Corporation Bhd is acquiring 100% equity interest in Metta Food & Lifestyle Sdn Bhd for RM30.8 million, as it ramps up expansion in the food and beverage (F&B) sector following its exit from the palm oil business.
In a Bursa Malaysia filing today, Oasis said it has entered into six separate conditional share sale agreements to acquire one million ordinary shares in Metta from various vendors, including Globaltec Formation Bhd and several individual shareholders.
The acquisition, deemed a related party transaction, will be satisfied entirely in cash and funded partly through internal funds and partly via new borrowings.
Oasis is also proposing a variation in the use of proceeds from an earlier property disposal to allocate RM6 million towards the purchase.
Metta operates well-known restaurant and café brands De.Wan 1958 by Chef Wan and Cafe Chef Wan, with eight outlets in the Klang Valley and Melaka.
Metta also produces fast-moving consumer goods such as sauces and spices. Upon completion, it will become a wholly owned subsidiary of Oasis.
To underpin the acquisition, two of Metta’s vendors and directors – Datuk Sri Tan Ooi Han and Andre Shum – have provided a profit guarantee of RM5.6 million in cumulative post-tax profit over the financial years ending June 2025 and 2026.
Oasis expects the deal to expand its F&B footprint quickly and create synergy with its existing brands, including Uncle Don’s and Verona Trattoria.
The group also plans to streamline its supply chain and integrate back-office operations across its F&B subsidiaries to improve cost efficiency.
As part of the deal, Oasis is proposing to revise its intended use of proceeds from a previously approved RM16.5 million property disposal.
Under the new plan, RM6 million will be redirected from marketing and working capital allocations to partially fund the acquisition of Metta.
The transaction is expected to enhance Oasis’ earnings from FY2026 onwards, with the group projecting stronger income contributions from its enlarged F&B operations and greater operational scale. — TMR
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