The Board of Directors of Oversea Enterprise Berhad announced that the Company had on 6 October 2020 entered into the Heads of Agreement with Focus Dynamics Group Berhad. The Parties are desirous of entering into a Heads of Agreement, to pool their respective resources, expertise and reputation in the F&B industry to revamp, expand and enhance the Oversea brand to global metropolises in a collaborative venture. At the same time, the Parties will also collaborate to establish new product offerings in local and expanded markets in line with developing technology, tastes and traction of the F&B industry.

The Parties will also look to leverage on each other's existing business platforms by cross selling product and enhancing internal processes with economies of scale, achieved by this collaboration. Oversea and Focus agree that this Agreement serves as a meeting of minds to establish a commercial partnership agreement to combine and pool the parties' respective resources and experience in a concerted expansion of the Oversea Brand. The Parties have earmarked a growth plan with significant investments to establish a worldwide brand, with its core strengths in technology and the Oversea Brand.

The HOA outlines 4 aspects of the expansion plan: Oversea Restaurants Expansion: This partnership, will tap on the resources of both parties to jointly explore the expansion plan of the Oversea Brand by establishing new restaurants worldwide in various key global cities. The targeted locations have been identified, and are selected in line with a view of rebranding the Oversea Brand from a local institution to the international arena. The partnership will target to open up to 8 outlets worldwide in these target markets offering the Oversea traditional blend of Chinese Cuisine with a Malaysian flair, utilizing Oversea Group's consistent and institutionalized menu, and Focus's lifestyle and technology approach to F&B to establish a new network of restaurants.

The targeted metropolises are: London, New York, Paris, Las Vegas, Hong Kong, Shanghai, Sydney and Singapore. The locations have been selected to benchmark the Oversea Brand as an international standard to modern Chinese fine dining, elevating the institutional Malaysian brand to a global one. The partnership also seeks to create more product types and international silos in line with the restaurant expansion plans, to enhance the international market for exporting Oversea mooncakes and pastries.

Focus' ability to provide marketing expertise on a digital scale utilizing e-commerce and marketing channels, coupled with Oversea's traditional manufacturing capacity for pastries, biscuits and mooncakes is the perfect amalgamation of resources to provide an effective Offline to Online strategy, and suited for expansion of the export market business. The new restaurants also effectively will operate as international silos for the fulfillment and distribution of other products and services generated by this collaboration. Catering and Banquet Services: The partnership also seeks to utilize Focus' expansion plans to develop The Arch on Jalan Tun Razak into a lifestyle F&B focused center.

The Arch sees the development focusing on massive banquet halls, and with Oversea having 50 years of experience in handling mass banquets and dinners, sees a solid partnership in place to develop a catering/banquet service that may even be replicated with the right real estate in the expansion plans of restaurants in the targeted markets. Food delivery platforms: The collaboration will also aim to capitalize on the rapidly expanding food delivery segment following an increasingly global shift towards lifestyle digitization. Apart from serving dine-in food, the collaboration aims to establish its own food delivery network in the respective target markets post expansion to deliver hot or freshly prepared foods as well as ready-to-cook meals from its network of restaurants to consumers.

The parties have agreed to finalize a commercial agreement outlining financials, commitment of resources, quantum of investment and schedules of implementation within 6 months of signing this agreement.