Harvest Miracle Capital Bhd is acquiring a 40% stake in Kaw Kaw Malaya Sdn Bhd (KKM) and providing shareholder advances in a deal valued at RM4.4 million, marking the group’s entry into the food and beverage sector.
The investment was formalised through a share subscription agreement with G&T Brand Sdn Bhd, the company behind Bungkus Kaw Kaw and Ah Cheng Laksa. KKM, which has yet to commence operations, plans to open two “Malaysian heritage-inspired” restaurant outlets at the newly refurbished Bangunan Sultan Abdul Samad and along Jalan Kemuning, off Jalan Imbi, in Kuala Lumpur.
The RM4.4 million consideration includes RM40,000 for the 40% equity stake and an interest-free, unsecured shareholder advance of RM4.36 million. Harvest Miracle said the deal provides exposure to a scalable food and beverage concept led by G&T Brand’s experienced management team, which has a strong operational track record nationwide.
Under the agreement, 70% of KKM’s quarterly profit after tax plus depreciation and amortisation will be distributed to Harvest Miracle until the RM4.4 million investment is recovered. This payout rises to 90% if recovery takes more than 24 months. G&T Brand will charge a 6% management fee on gross revenue, which may be discounted by up to 60% if the investment is not recovered within 36 months.
The deal also includes a put option allowing Harvest Miracle to exit with a “protected minimum return.” Under the exit and liquidity rights clause, Harvest Miracle may exit via an initial public offering or strategic investment at 12 times KKM’s latest annual EBITDA, or require G&T Brand to buy back its stake at 10 to 15 times EBITDA within 36 months.
KKM projects annual distributable payouts between RM1.8 million and RM4.5 million, implying an investment recovery period of roughly one to 2.4 years.
Harvest Miracle shares closed unchanged at 14 sen on Thursday, giving the group a market value of RM287.9 million.
