Friday, September 30, 2011

Catcha ... Sep11

Catcha Media has proposed to acquire the entire equity interest of Singapore’s Haute Groupe Pte Ltd (HGPL) for a total consideration of S$5 million (RM12.4 million), to be satisfied in cash and via new shares.

HGPL runs a luxury fashion sales website,, operating predominantly in Singapore with 25,000 active users.

The proposed acquisition comes with a profit guarantee of S$1.5 million (for a 12-month period commencing after conclusion of the exercise) from the previous shareholders, Long Siew Fong and Low Choong Lang.

This values the acquisition at a three times forward price-earnings ratio (PER), which we deem cheap. HGPL was initially set up to sell luxury goods at a discount for a limited time in warehouses or public halls.

Early 2011, it began operating a luxury flash sales website,, which sells luxury goods online at a discount for a limited time-frame. The website offers up to a 70% discount on luxury items ranging from branded accessories, handbags to watches and sunglasses.

The purchase consideration will be partly satisfied by the issuance of 1.6 million new shares in Catcha Media at 75 sen each, with the remainder to be paid in cash. This could indicate a potential earnings per share (EPS) dilution of 1%, which deem insignificant to have any impact on the share price given the new acquisition’s earnings accretion of more than 30%.

Cash funding should not be an issue given the company’s recent IPO which raised more than RM15 million.

While this marks Catcha Media’s first venture into e-commerce, the strategy is intended to complement its existing business by introducing the exact model in Malaysia leveraging on the strong 10 million active users recorded in MSN and portals.

1 comment:

Mrs.Irene Query said...


Hello Everybody
My name is Mrs.Irene Azlin. I live in Malaysia and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $70,000.00 to start my life all over as i am a single mother with 4 kids I met this honest and GOD fearing man loan lender that help me with a loan of$70,000.00. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs.Irene Azlin, that refer you to him. contact DR KELLY WILLIAMS,via email:( Thank you.