Only World Group expands into adventure games

This was among the spooky decorations at OWG's Wet World Water Park in Shah Alam when OWG teamed up with Escape Room to create Halloween-themed escape games.

KUALA LUMPUR: Only World Group Holdings Bhd (OWG) is expanding into real-life physical adventure games through the purchase of a 60% stake in Escaperoom Holdings Sdn Bhd for RM5.4mil.

The leisure and hospitality services provider told the exchange yesterday that the acquisition - its first since making its debut on Bursa Malaysia last December - would also allow it to venture abroad by leveraging on Escaperoom Holdings’ presence overseas.

OWG’s wholly owned subsidiary Believe It Or Not Sdn Bhd (BION) yesterday signed a conditional share sale agreement with Datuk Ong Kee Seng, Datuk Victor Lo Tung Ho and Datuk Jason Leung Chak Sum to buy the 60% stake. 

Shah Alam-based OWG said Escaperoom Holdings owned the Escape Room brand and that its core business was providing real-life physical adventure games/puzzle concept. 

As at July 21, Escape Room was available in seven outlets throughout Malaysia (the first was opened in eCurve, Petaling Jaya, in 2013) and one outlet each in Australia, Estonia, India, Romania, Thailand, the United Kingdom and Vietnam.

Escaperoom Holdings has registered its Escape Room brand in Australia, the European Union and Malaysia. It is awaiting approval for the registration of its Escape Room brand in Canada, India, Indonesia, Thailand, the United Arab Emirates, the United States and Vietnam.

Escaperoom is in the midst of negotiations with potential business associates to further expand its presence in the Middle East and Europe. 

OWG said the vendors guaranteed that the cumulative consolidated profit after tax of Escaperoom Holdings for the two financial years ending June 30, 2016 and 2017 would be no less than RM4mil.

For the financial year ended June 30, 2015, Escaperoom Holdings recorded an after-tax profit of RM1.03mil on revenue of RM3.453mil. Its net assets totalled RM1.45mil.

OWG said the proposed acquisition allowed the group to expand the operation of its amusement and recreation segment, which currently includes the operation of three water amusement parks under the Wet World brand and, under BION, family attraction Ripley’s Believe It or Not and Haunted Adventure in Genting Highlands. (OWG also has a food services segment which operated 25 outlets when it issued its prospectus.) 

The company also sees the proposed acquisition as facilitating its strategic plans to expand its presence abroad by leveraging on Escaperoom Holdings’ presence overseas.