Star Combo to Acquire the Businesses of Koala Mall and Austoyou Group


On 7 February 2019, Star Combo Pharma Limited (ASX: S66) announced that it has entered into an agreement for acquiring the businesses of Koala Mall Pty Ltd and Austoyou Group Pty Ltd for a worth of A$10 million.

The CEO of Star Combo Pharma, Su Zhang said that the due diligence of the company in August of last year has resulted in the successful acquisition of Austoyou and the Koala Mall retail business. These acquisitions are in line with the company’s strategy of acquiring an e-commerce platform that will advance the evolution of the business from a vitamin and supplements manufacturer & supplier to a fully integrated health care company coupled with manufacturing and multiple sales channels and the expansion of the distribution networks of the company.

The acquired businesses delivered approximately $17 million in sales in FY18 and had shown growth of more than 20% per annum in the past two years as demand for a broad range of Australian manufactured and quality-controlled consumer goods, continues to increase from Chinese consumers. 

In 2018 the market in China, for vitamins and health supplements, was estimated to be in excess of US$5.2 billion along with continuous growth. Chinese consumers view Australian produced products as being of high quality and subject to rigorous regulation and quality control. Hence, the addition of the Austoyou e-commerce platform, which will deliver Australian made supplements direct to the consumer in China, is viewed by the company as a transformational acquisition that will accelerate growth plans with a significant near-term increase in revenue.

The acquisition details include Austoyou and Koala Mall will be acquired via the Share Sale and Purchase Agreement dated 5 February 2019 and will be completed in stages which includes immediate payment on settlement of 70% of the purchase amount structured as 50% cash payment and 50% in shares issued at $0.51. Secondly, 12 months post-settlement, a further 15% of the purchase amount will be paid. If any shares are to be issued for this payment, they will be issued at a 10% discount from the VWAP in the ten days prior to payment, with the final stage involving 24 months post-settlement, a final 15% of the purchase amount will be paid.

Now let us quickly have a glance at Star Combo Pharma Limited’s stock performance and the return it has posted over the last few months. The stock last traded at a price of $0.850 and increased significantly by almost 54.54% during the day’s trade, with a market capitalisation of $43.76 million. The stock has generated a negative return of 41.18% and 2.65% over the last six months and one-month period respectively. It has a 52-week high price of $2.030 and a 52-week low of $0.500, with an average trading volume of 19,035 approximately.

Sponsored ad by Kalkine


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report


Please enter your comment!
Please enter your name here