☕️ How much is Tealive worth? RM867 million according to its new investor, major PE firm, Creador

4.6% unemployment rate in Malaysia lowest since Oct20-how is this real? Softbank invested in Europe's most valuable fintech startup - Klarna. 64% of millennials regret purchasing their current home.

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1. MARKET SUMMARY


2. NUMBERS AT A GLANCE

Malaysia Investment Development Authority (MIDA) approved investments had approved RM80.6 billion worth of investments in 1Q2021, including RM54.9 of foreign direct investments.

Department of Statistics Malaysia (DOSM) reported unemployment rate in Malaysia for April 2021 has dropped to 4.6%, the lowest rate since October 2020.

USD8,000 — the estimated price of a Moet & Chandon that dates all the way back to 1911.


3. COVID-19 SUMMARY

  • Hari Raya Aidilfitri and Hari Gawai celebrations had created 58 and 2 Covid-19 clusters, respectively.

  • On a brighter note, kudos to everyone for making it happen — the country has been inoculating more than 150,00 doses per day for June 8 (151,309) and June 9 (154,866). We are all in this together!

  • The Health Ministry detected 23 Covid-19 variants of concern (VOC) between June 3 and 8.

  • AstraZeneca is working closely with Southeast Asian nations to supply vaccine ASAP after reported delays from Thailand. AstraZeneca has to keep mum about Siam Bioscience’s production capacity because King Hama Vajiralongkorn is the latter’s sole owner.

  • United States of America and United Kingdom will donate 500 million and 100 million doses of Covid-19 vaccine through the Covax programme, respectively.


4. IN MALAYSIA 🇲🇾

  1. Nine-member investigation committee concluded the unfortunate LRT collision that happened on May 24 2021 was because certain critical train operation standard operating procedures (SOP) were not adhered to. This lead to Train 40 heading northbound instead of southbound and collided with Train 81. The committee has proposed 23 improvements to the made, with five to be implemented within three months.

    Three critically-injured passengers are now placed under observation at Kuala Lumpur Hospital’s (HKL) neurosurgery ward. One of the families has filed RM1.8 million claims in damages against the LRT operator.

  2. A global manufacturer of high-end printed circuit boards (PCBs) and integrated circuit (IC) substrates, AT&S has chosen Malaysia for its maiden production plant in Southeast Asia. The RM8.5 billion facility will be set up in Kulim Hi-Tech Park, Kedah and will create 5,000 high-tech and high-impact jobs.

  3. Local bubble tea outfit Tealive’s holding company Loob Holding Sdn Bhd has sold a strategic stake of 30% to private equity firm Creador for approximately RM260 million according to The Edge.

    Based on Loob’s FY2020 (ended June) earnings of RM53.5 million, the price tag indicates a historical PE of 16.2 times. The franchise of Starbucks in Malaysia and Brunei — Berjaya Food Berhad (BFood)’s historical PE was 20.8 times in FY2019 (the most recent full profitable financial year). Did Creador get a good deal?

News in brief

  1. Four political leaders met with Yang di-Pertuan Agong Sultan Abdullah Sultan Ahmad Shah at the Istana Negara on second day of meets. Tun Dr Mahathir Mohamad proposed establishing a National Operations Council like what Tun Abdul Razak had set up in 1969 to deal with political issues at that time.

  2. SME Association of Malaysia has urged the government to allow a six-month automatic loan moratorium that is interest-free and without any condition for all borrowers as the full scale MCO will likely see 40% of SMEs closing their doors.

  3. IGB Commercial REIT’s initial public offering (IPO) will list 2.31 billion units on Bursa Malaysia’s Main Market. The IPO is open until 5pm on July 6 2021 and the listing should happen on July 30 2021 — download the prospectus here.


5. AROUND THE WORLD 🌎

  1. After weeks of rumours swirling, Swedish fintech startup, Klarna, has confirmed that it raised USD639 mil at a valuation of USD45.6 bil, in a round led by Softbank’s Vision Fund 2. In a short span of 3 months, its valuation increased by 47.3% from its previous fundraising round back in Mar, valuing it at USD31 bil and a 330% increase over its USD10.6 bil valuation in its previous fundraising round back in September. This new fundraising makes Klarna Europe’s most valuable private fintech company and second in the world behind Stripe. 

    Some key highlights on Klarna:

    1. Live in 20 markets with 250,000 retailers

    2. More than 90 mil global active users

    3. More than 2 mil transactions a day conducted on its platform

    4. Q1 2021 USD18.1 bil in volume compared to Q1 2020 volume of USD9.9 bil 

    5. Processed USD53 bil in volume in 2020

    6. 4,000 employees

    Read Klarna’s CEO and founder, Sebastian Siemiatkowski’s exclusive interview with Techcrunch here. 

  2. Cheap and easy money is going to continue flowing. The European Central Bank (ECB) said it will maintain the pace of its bond purchases  under its EUR1.85 tril pandemic emergency purchase programme (PEPP) in the 3 months to September at ‘a significantly higher pace than during the first months of the year’. ECB President, Christine Lagarde said it was ‘too early’ to scale back its bond purchases with the ECB having over EUR700 bil of the EUR1.85 tril left to spend on the PEPP. 

    This act of ECB and various other central banks is a clear manipulation of the markets in order to support asset prices, completely destroying price signals that ensure the market functions in its natural order. The common people will not benefit from this, whilst protecting the wealthy and keeping zombie companies in the economy - Cantillon effect in full-on mode. The world’s wealthiest 500 individuals are now worth a collective USD8.4 tril, +40% in the 1.5 years since the global pandemic broke out - correlation or causation with relation to central banks ‘printing money’ to combat the pandemic? 

    News in Brief:

  3. The cause of the huge outage across major sites like Reddit, Spotify, Financial Times? A single customer of Fastly, the content delivery network service provider whose service went down and took down the rest of its clients’ sites, made a configuration under specific circumstances that triggered the bug. 

  4. JBS, the world’s largest meat company has paid the ransom of USD11 mil in bitcoin after falling victim to a ransomware cyberattack. In a similar attack, Colonial Pipeline was able to retrieve the USD2.3 mil of the USD4.4 mil in ransom paid through the FBI.

  5. The man who slapped French President Emmanuel Macron during a campaign stop in southeastern France was sentenced to 4 months in prison. 


6. FOR YOUR VIEWING PLEASURE 👁👁 (Beta Mode)

  1. Astro Awani’s animated reenactment of the LRT crash.

  2. Are you a millennial and have bought a property? 64% of millennials (ages 25 to 40) have at least 1 regret purchasing their current home, in a survey of 1,400 US homeowners. Share any of these regrets?