PETALING JAYA: Bubble tea maker Loob Holding Sdn Bhd is planning an initial public offering on the local bourse next year to raise as much as RM300 million.
According to Bloomberg, the Tealive brand owner has hired advisers for the exercise and is aiming for a listing in the first half of next year. It was reported that the firm is considering seeking a valuation of as much as RM1 billion.
Tealive has over 200 outlets in Malaysia and has expanded to Vietnam, Australia and China.
Tealive was created following a dispute between Loob and La Kaffa International Co Ltd that saw the Taiwanese franchisor terminate its Chatime master franchisee contract with Loob.
In August last year, Loob and La Kaffa reached an out-of-court settlement to amicably resolve all their disputes arising from their one-time franchise relationship.
Loob manages a diverse portfolio of food and beverage brands in Malaysia, including Tealive, Gindaco, Croissant Taiyaki, Define: food; and Define: burgers, Kokokai and Soda Xpress.
Earlier this month, Loob divested its stake in llallao to focus on global expansion, particularly on its flagship brand Tealive.
KUALA LUMPUR, Jan 21 — After recording an impressive business growth within one year of a ‘comeback’, food and beverage provider Chatime Malaysia Sdn Bhd aims to be the world’s biggest Chatime operator by year-end. Group managing director…
KUALA LUMPUR: Food and beverage provider Loob Holding Sdn Bhd of Tealive and Taiwan's La Kaffa International Co Ltd of Chatime have reached an out-of-court settlement to amicably resolve all their disputes arising from their one-time franchise relationship of the latter’s Chatime bubble tea brand.
In a settlement agreement executed yesterday, both parties have agreed to withdraw all proceedings in Malaysian courts and arbitration in Singapore.
“This settlement shall not constitute nor be deemed nor treated by any party as an admission of any allegation and/or liability. Parties have come to an agreement in resolution of their disputes, in which the decision has also been made to stop all court or any other enforcement actions against each other,” Loob and La Kaffa said in a statement today.
Both parties have agreed that all the other terms shall remain private and confidential.
PUTRAJAYA, July 16 — Tealive bubble tea brand outlets can continue to operate its business for now after its owner, Loob Holding Sdn Bhd, succeeded in obtaining an interim stay from the Federal Court against an interim injunction obtained by…
KUALA LUMPUR, July 16 — Loob Holding Sdn Bhd said all its Tealive outlets will continue operating pending its appeal against the court ruling secured by La Kaffa International Co Ltd from which it previously franchised the Chatime bubble tea…
KUALA LUMPUR: The Court of Appeal has rejected the application by Tealive's Loob Holding Sdn Bhd to stay an injunction granted in favour of Chatime’s principal, La Kaffa International Co Ltd on June 27, 2018.
Loob’s application, filed a day after the Court of Appeal’s ruling of the interim injunction, was rejected on the grounds that the company breached various contractual and legal obligations to La Kaffa related to its restraint of trade obligations and Malaysia’s franchise law.
The ruling thereby prohibits Loob from operating Tealive as a competing business to Chatime for a period of two years in Malaysia, in accordance with the law.
KUALA LUMPUR: The Court of Appeal has rejected Loob Holding Sdn Bhd’s bid to keep its Tealive outlets open while it appeals a court ruling that prohibits it from operating as a competing business to Chatime for a period of two years here.
Loob’s application, filed a day after the Court of Appeal’s ruling on the interim injunction on June 27, was rejected on the grounds that the company breached various contractual and legal obligations to La Kaffa International Co Ltd related to its restraint of trade obligations and Malaysia’s franchise law, thereby prohibiting Loob from operating Tealive as a competitor to Chatime for two years in Malaysia in accordance with the law.
Loob has been operating 161 Tealive outlets in Malaysia for more than a year. Their closure will affect 800 staff. Loob has since expanded Tealive overseas, including in China, Australia, India and Vietnam.
Chatime Malaysia group managing director Aliza Ali praised the decision by the court, stating that the verdict strengthens confidence for more international franchisors to build trade ties in the country.
She said she is, however, mindful of the repercussions on the livelihood of the employees and outlet owners who will be directly affected by the injunction, along with customers who have been its business priority from day one.
“Within the scope allowed by relevant laws, we would welcome former Chatime franchisees and employees who have been affected by the whole ordeal to contact us should they require assistance from us. Our decision to allow those affected outlets to return and reoperate under Chatime was made in regards to the overwhelming requests in light of the recent injunction granted by the court. Our doors are open to the employees and outlet owners who have found themselves in this precarious position today. They are our priority at the moment,” said Aliza.
Loob said in a separate statement it had on Wednesday filed for leave to appeal to the Federal Court against the Court of Appeal’s decision. Its lawyers have been instructed to make the necessary application to the Federal Court to maintain the status quo and the application was filed today.
KUALA LUMPUR: Tealive owner Loob Holding Sdn Bhd will file an application for a stay and for leave to appeal to the Federal Court after the Court of Appeal granted an injunction by Chatime franchisor La Kaffa International Co Ltd against Tealive from continuing its operations.
La Kaffa had filed the appeal after the High Court dismissed its injunction bid in May 2017 against former franchise holder Loob from carrying a similar business as Chatime.
“This matter is being handled by our lawyers and we will let the due process of law take its course. We have instructed them to make the necessary application to the courts to allow us to maintain status quo until final settlement of the entire legal process,” Loob said in a statement today.
Loob is now at risk of closing 161 of its Tealive outlets, which will affect 800 staff, if the injunction stays.
Tealive was created following a dispute between Loob and La Kaffa last year that saw the Taiwanese franchisor terminate its Chatime master franchisee contract with Loob.
Loob has since expanded Tealive overseas, including in China, Australia, India and Vietnam.
PETALING JAYA: Will Group Sdn Bhd, the master franchisee for Chatime in Malaysia, is eyeing the rights for Chatime in Singapore a year after it opens its first outlet there.
Chatime Malaysia group managing director Aliza Ali said it has obtained the green light from Chatime franchisor La Kaffa International Co Ltd to enter the Singapore market, where it will open two Chatime outlets in shopping malls this year and an outlet in Jewel Changi Airport in 2019 to gauge the market there.
“It (Singapore master franchisee) is something that we’re eyeing but let us prove ourselves to the principal (La Kaffa) first. If they see that we can manage the market in Singapore and if they’re happy with our performance, we will talk about the possibility (of being the Singaporean master franchisee),” she told SunBiz.
Aliza noted that there are existing bubble tea players that are doing well in Singapore, such as Koi, Gong Cha and LiHo. There is no Chatime in Singapore yet. Its rival Tealive is also not in Singapore, but has ventured into Vietnam and announced plans to go into Australia.
“This (Singapore) is a new market, we can’t just go in and want the master franchisee rights without showing that we are going to do it well. We have to open (outlets) first then only we can see how the market is. For us to jump in to be the master franchisee and put our investments there without knowing how we want to move ahead, wouldn’t be a smart move either,” she explained.
Aliza added that franchisors will usually save the exclusivity of a territory for a franchisee, while it markets the brand there. Once the franchisee has opened a certain number of outlets for a period of time, the franchisor will then award the master franchisee rights to the selected franchisee.
While Singapore is a feasible venture for Will Group, the bubble tea company is also entering the Middle East market, with plans to open Chatime outlets in Mecca and Medina this year.
There is already a Chatime master franchisee in the Middle East in Saudi Arabia (Jeddah) hence Will Group is aiming for Mecca and Medina where Chatime is yet to be present, under a sub-franchisee arrangement.
“We would like to have some exclusivity there (in the Middle East) but we’re aware that there is already a master franchisee so any planning would have to be done out of respect for the master franchisee there. It has to be something that the master franchisee is comfortable to grant us. With the help of La Kaffa, we would like to get our interest across to the master franchisee there,” said Aliza.
Its expansion plan into Singapore and Middle East comes after Chatime Malaysia obtained the halal food certification from the Department of Islamic Development Malaysia for its menu, paving the way for new avenues of business. It has outlined a five-year RM100 million expansion plan targeting over 150 outlets in Malaysia and internationally.
Will Group was offered the role of master franchisee for Chatime in Malaysia following a dispute that escalated between La Kaffa and ex-master franchisee Loob Holding Sdn Bhd last year, that saw the franchisor terminating the master franchisee contract with Loob.
PUTRAJAYA: Chatime Malaysia, which has outlined a five-year RM100 million expansion plan targeting over 150 outlets in Malaysia and internationally, said Loob Holding Sdn Bhd has yet to respond to its legal letter issued last Thursday, but noted that Loob has removed the misleading headlines on its website.
The legal letter calls for Tealive to stop confusing the public through Loob’s misleading headline published on the company’s website, which read “Chatime renamed as Tealive” and “Tealive replaced Chatime” and have caused confusion among Chatime’s customers.
Chatime Malaysia group managing director Aliza Ali said it has given Loob seven days to respond to its legal letter and will leave the next steps to its legal team.
“For the past one year, the headlines have been there and the damage they have done to Chatime and to Chatime customers is a lot. Just by taking it (headlines) down is not going to do justice for us and our customers. There must be something that they do for people to know that Chatime has not been renamed to Tealive. You’ve done this damage, you’ve to fix it,” she told reporters at its halal certification presentation ceremony today.
It is calling for Tealive to correct the misconception and offer an apology to Chatime customers for the confusion.
She said it is disheartening to know that after a year it has been awarded the franchise in Malaysia, the public still thinks that Chatime has been rebranded and is now known as Tealive. The issuance of the legal letter to Loob is its way of responding to the situation it finds itself in as a result of Tealive’s misleading branding exercise.
“Before we expand further, we need to address this issue where there’s a misconception. We would rather sort this out first, before we move ahead. If the misconception is still there, it would indirectly still affect the customers,” said Aliza.
Earlier, Chatime Malaysia was presented the halal food certification from the Department of Islamic Development Malaysia (Jakim). It has obtained the Jakim halal food certification for its menu and five of its outlets.
Aliza said it is undergoing halal certification for the rest of its outlets. It has 34 outlets in Malaysia currently and plans to open eight new outlets in two months’ time.
The bubble tea company seeks to incorporate the halal certification into its five-year plan, which will see it expand into Singapore, as well as Mecca and Medina in the Middle East this year.