KUALA LUMPUR (June 29): Oasis Harvest Corporation Bhd (KL:OASIS) is selling its entire equity interest in an alcohol trading unit, an ongoing transition towards becoming a shariah-compliant company.

The stake in Oasis Harvest Distribution Sdn Bhd (OHDSB) is sold to Jonathan Chan Ye Earn, the founder, chief executive officer and director of law firm Jonathan Chan & Co, fetching RM2.45 million in cash.   

In 2024, OHDSB held a 70% equity interest in Verona Caritas Culinary Sdn Bhd, including its wholly owned, alcohol-trading subsidiary Verona Harvest Wines Sdn Bhd.

This sale will be used to expand the group's operations in the food and beverage (F&B) industry, especially after Oasis’ acquisition of Metta Food & Lifestyle Sdn Bhd in October for RM30.8 million. 

Metta is involved with the operations of De.Wan and Cafe Chef Wan restaurants and cafes, covering eight restaurants across the Klang Valley, Melaka and Kuala Terengganu.

“The proposed disposal will enable the group to streamline its business portfolio through the divestment of a non-core business activity, while allowing the group to optimise the allocation of its resources towards the growth and development of its core F&B operations,” said Oasis in the Bursa announcement.

Specifically, proceeds raised will be used for Oasis' working capital requirements, strengthening its cash position and providing financial flexibility in managing its F&B operations and strategy. The cost of F&B staff, inventory and operating costs alone are estimated to make up RM2.21 million.

Oasis’ shares were unchanged on Monday at 12 sen, valuing the company at RM17.7 million. Year to date, it is down 46.67%.