Deal Retrospective: On 15 February 2023, Bursa Malaysia-listed dairy group Farm Fresh Berhad agreed to buy 65% of The Inside Scoop Sdn Bhd, Malaysia’s largest home-grown premium ice cream parlour chain, for RM83.9 million (about US$19 million) in cash and shares. The deal completed in June 2023. Three and a half years later, the chain has roughly doubled to more than 70 outlets, Farm Fresh has bought two more ice cream businesses, and in August 2026 co-founder Edmund Tan exercised a put option that forces Farm Fresh to buy another 20% for RM50.8 million — at an implied valuation almost twice the 2023 entry price. This retrospective looks at how the deal was structured, what it cost, and who really came out ahead.
Key Takeaways
- Farm Fresh Berhad (Bursa Malaysia: FFB, 5306) agreed on 15 February 2023 to acquire 65% of The Inside Scoop Sdn Bhd (TISSB) for RM83.9 million: 53% bought from existing shareholders for RM68.4 million and 12% via a RM15.5 million subscription for new shares, according to The Edge Malaysia.
- Of the RM68.4 million paid to sellers, RM48.4 million was cash and RM20 million was settled with 13.16 million new Farm Fresh shares issued at RM1.52 each; the cash was funded by reallocating RM63.91 million of Farm Fresh’s 2022 IPO proceeds.
- The price valued The Inside Scoop at roughly RM129 million, or about 16.5 times its FY2022 net profit of RM7.8 million; Maybank Investment Bank estimated the deal would add about RM3.8 million a year to Farm Fresh’s net profit.
- Co-founder Edmund Tan Jun Hua kept 35% plus a put option under a shareholders’ agreement dated 31 May 2023; on 28 August 2026 he exercised it for 20% at RM50.8 million, implying an equity value of about RM254 million and lifting Farm Fresh to 85%.
- The Inside Scoop grew from 37 outlets at announcement to more than 70 by 2026, and the deal became the first of three Farm Fresh ice cream acquisitions, followed by Sin Wah (70% for RM28.4 million, October 2023) and Sabah-based Amelia (RM35 million, May 2026).
Deal Snapshot
| Target | The Inside Scoop Sdn Bhd (TISSB), Malaysia — premium ice cream parlour chain, founded 2013 |
| Acquirer | Farm Fresh Berhad, Malaysia — Bursa Malaysia Main Market-listed integrated dairy group |
| Deal Type | Acquisition of a majority stake (share purchase plus new-share subscription) |
| Stake Acquired | 65% (53% purchased from existing shareholders + 12% via subscription of new TISSB shares) |
| Deal Value | RM83.9 million (about US$19 million) |
| Consideration | RM48.4 million cash + RM20 million in 13.16 million new Farm Fresh shares at RM1.52 each for the 53%; RM15.5 million cash for the 12% subscription |
| Sellers | Edmund Tan Jun Hua (61% of TISSB), Derrick Wu (37.9%) and Harsh Rajpal (1.1%) |
| Announced / Completed | 15 February 2023 / June 2023 |
| Implied Valuation | About RM129 million for 100%; about 16.5x FY2022 net profit of RM7.8 million |
| Post-Deal Ownership | Farm Fresh 65%, Edmund Tan 35% (with a put option); from 2026, Farm Fresh 85%, Tan 15% |
| Official Websites | farmfresh.com.my · insidescoop.com.my |
The Target: The Inside Scoop Before the Deal
The Inside Scoop was founded in 2013 by husband-and-wife team Edmund Tan Jun Hua and Lim Shiew Li, who opened their first parlour in Bangsar, Kuala Lumpur. The brand built its following on locally inspired flavours such as durian, cempedak, teh tarik, cendol and salted gula melaka, made with natural ingredients and halal-certified. By the time of the Farm Fresh deal it had opened 37 outlets and grown revenue from about RM10 million in 2017 to RM36.3 million in 2021, a compound annual growth rate of roughly 38%, according to Vulcan Post. Net profit for FY2022 was about RM7.8 million, a figure cited by Maybank Investment Bank via the New Straits Times. Farm Fresh’s own announcement described the business as one of the fastest-growing artisanal ice creameries and the largest home-grown ice cream chain in Malaysia.
That profile made The Inside Scoop an unusual target for a Malaysian listed company: a profitable, founder-run consumer brand with double-digit margins and a clear expansion runway, rather than a turnaround or a distressed asset. It also made it expensive by local F&B standards, which is why the structure mattered as much as the price.
The Acquirer: Farm Fresh in Early 2023
Farm Fresh had listed on the Main Market of Bursa Malaysia only eleven months earlier, on 22 March 2022, raising about RM1 billion at RM1.35 per share. The group, founded by Loi Tuan Ee in 2009, was Malaysia’s largest fresh-milk producer, with farms and plants in Muadzam Shah, Johor and Victoria, Australia, and a portfolio of chilled and UHT milk, yoghurt and its new Jom Cha by Farm Fresh beverage outlets. But FY2023 was a difficult year: higher milk powder and feed costs had squeezed margins. Management needed a growth story that did not depend on commodity dairy margins. For the full background on the group, see our Farm Fresh Berhad company profile.
How the Deal Was Structured
Two steps: a share purchase and a subscription
Farm Fresh first bought 53% of TISSB from its existing shareholders — Edmund Tan (who held 61%), Derrick Wu (37.9%) and Harsh Rajpal (1.1%) — for RM68.4 million. Of that, RM48.4 million was paid in cash and RM20 million through the issue of 13.16 million new Farm Fresh shares at RM1.52 each, according to The Edge Malaysia. It then subscribed for new TISSB shares equal to a further 12% for RM15.5 million, money that went into The Inside Scoop itself to fund growth rather than to the sellers. On completion Farm Fresh held 65% and Edmund Tan retained 35%; Wu and Rajpal exited. The Malaysian Reserve reported the headline price as RM84 million.
Funded from IPO proceeds, not new debt
The RM63.91 million cash component was funded by reallocating IPO proceeds: RM55.15 million originally earmarked for an Australian facility and RM8.76 million set aside for a Malaysian hub. In other words, Farm Fresh redirected capital from upstream dairy capacity into a downstream consumer brand — a telling choice about where management saw the better return.
The put option that shaped everything after
The feature that matters most in hindsight was the shareholders’ agreement signed on 31 May 2023. It gave Edmund Tan the right to require Farm Fresh to buy his remaining TISSB shares at a pre-agreed formula price. For Farm Fresh, that kept the founder invested and running the business. For Tan, it created a guaranteed exit whose value would rise with the chain’s earnings. The founders were also put in charge of Farm Fresh’s wider ice cream division, according to The Star.
Valuation: What Farm Fresh Paid
Both legs of the transaction priced The Inside Scoop at about RM129 million for 100%: RM68.4 million for 53% and RM15.5 million for 12% each work out to roughly that figure. Against FY2022 net profit of RM7.8 million, that is a price-to-earnings multiple of about 16.5 times — a full price for a Malaysian F&B chain, but well below the roughly 30-to-37 times forward earnings at which Farm Fresh’s own shares traded in the first half of 2026. Maybank Investment Bank called the deal earnings-accretive, estimating that if TISSB’s FY2022 profit was sustained, Farm Fresh’s share would add about RM3.8 million a year to group net profit, and kept a buy call with a RM1.75 target. After completion, TA Research upgraded Farm Fresh to buy with a RM1.74 target, citing the Inside Scoop entry as a way into consumer packaged ice cream and a source of vertical-integration savings.
The Strategic Logic
The rationale had three parts. First, margin: parlour ice cream earns far more per litre of milk than chilled milk on a supermarket shelf. Second, integration: Farm Fresh could supply dairy inputs to The Inside Scoop and, over time, manufacture ice cream in-house at its planned Bandar Baru Enstek hub in Negeri Sembilan, where a central kitchen was part of the plan announced in 2023. Third, brand adjacency: management talked openly about combining The Inside Scoop with Jom Cha by Farm Fresh, which then had 25 kiosks and a target of 300 over three years, according to New Straits Times. The Inside Scoop set out to double its outlet count in the medium term and said it was evaluating the Philippines and Indonesia. It is the same logic OEMReview has explored in its guide to private label versus national brands: owning the brand and the production, instead of relying on contract manufacturers, is where the margin lives.
What Happened Next (2023–2026)
The outlet pledge was delivered
The Inside Scoop now operates more than 70 scoop shops across Malaysia, according to its official website and The Edge Malaysia — roughly double the 37 outlets it had at announcement. On outlet count alone, the core promise of the deal was kept within about three years.
Inside Scoop became a platform for more ice cream deals
In October 2023, just four months after completion, Farm Fresh bought 70% of Sin Wah Ice Cream Sdn Bhd, a mass-market popsicle maker, for RM28.4 million, adding cold-chain distribution to The Inside Scoop’s premium brand. It launched the Cream Hauz packaged ice cream brand in August 2024, and by FY2025 ice cream contributed about 10% of group turnover, with plans to double the freezer network from roughly 10,000 to 20,000 units, according to The Edge Malaysia. In May 2026 Farm Fresh added Sabah-based Amelia Ice Cream for RM35 million, as reported by The Edge Malaysia.
Farm Fresh’s earnings recovered
The parent’s fortunes turned too. Farm Fresh reported revenue of RM1.12 billion and a record net profit of RM129.6 million for the year ended 31 March 2026, according to BusinessToday. Ice cream is not the main driver of that recovery — fresh milk, school milk and Cambodian exports did most of the work — but it has become a genuine second leg.
The put option was exercised
On 28 August 2026 Farm Fresh disclosed that Edmund Tan had exercised his put option for 174,618 TISSB shares, a 20% stake, at RM50.8 million, raising Farm Fresh’s holding to 85% and cutting Tan’s to 15%, according to The Edge Malaysia and New Straits Times. The price implies an equity value of about RM254 million for The Inside Scoop, almost double the roughly RM129 million implied in 2023. Days later, on 3 September 2026, Farm Fresh proposed a private placement of up to RM200 million, earmarking RM50 million of the proceeds for the Inside Scoop stake purchase, according to The Edge Malaysia.
Retrospective Scorecard
| Outlet expansion | Delivered — 37 outlets (Feb 2023) to more than 70 (2026) |
| Valuation | Implied equity value up from about RM129 million (2023) to about RM254 million (2026) |
| Platform effect | Delivered — followed by Sin Wah (2023), Cream Hauz (2024) and Amelia (2026) |
| Regional roll-out of the Inside Scoop brand | Unproven — the Philippines and Indonesia were being evaluated in 2023, but the chain remains Malaysia-focused |
| Cost of the exit | RM50.8 million for 20% in 2026, partly funded by a dilutive share placement |
Why This Deal Still Matters
The Farm Fresh–Inside Scoop structure — a majority stake, founders keeping a meaningful minority, part-payment in the acquirer’s shares and a formula-priced put option — has since become a common template for listed Malaysian consumer groups buying founder-led F&B brands. Compare Hextar Industries’ attempted 51% purchase of llaollao operator Woodpeckers, InNature’s acquisition of the Burger & Lobster franchise and the growth-capital route taken by ZUS Coffee. In Vietnam, Bain Capital’s minority investment in Masan Group shows the same preference for keeping founders in control. More deals like these are tracked on our M&A & Investment Insights hub.
My Take
My opinion: this was a good deal for Farm Fresh and an even better deal for Edmund Tan — and the gap between those two is the most instructive thing about it. Farm Fresh paid about 16.5 times earnings in 2023 for a brand that has since doubled its footprint, and it used that brand as the beachhead for an ice cream business that now includes Sin Wah, Cream Hauz and Amelia. Judged purely on strategy, the acquisition did what it said it would do. The outlet pledge was met, the ice cream division exists, and a dairy company that looked like a commodity producer in early 2023 now has a consumer-brand story that the market is willing to pay for.
But look at who captured the value. Tan sold down in 2023 at roughly RM129 million for the whole business, kept 35%, ran the company with Farm Fresh’s capital and supply chain behind him, and then sold another 20% at about RM254 million three years later — while still holding 15% for a potential third bite. That is close to a perfect founder exit, and every owner of a Malaysian F&B chain should study the shareholders’ agreement of 31 May 2023. Farm Fresh, by contrast, is paying for the put option partly through a placement that dilutes its own shareholders by about 5.8%, at a time when group margins are under pressure. The put option was a cost that was easy to ignore in 2023 and impossible to ignore in 2026.
What does it signal? First, that premium local brands with real growth can command strategic prices from listed buyers without selling 100%, which is healthy for Malaysia’s founder ecosystem. Second, that acquirers need to price the option, not just the stake: a put at a formula price is effectively deferred consideration, and it lands exactly when the target has done well and the acquirer may least want to spend cash. My view is that Farm Fresh should now take The Inside Scoop regional — Cambodia, where it already out-ships Singapore, is the obvious first market — because a RM254 million valuation only makes sense if the brand travels. If it stays a Klang Valley parlour chain, the 2026 top-up will look expensive in hindsight.
Frequently Asked Questions
How much did Farm Fresh pay for The Inside Scoop?
Farm Fresh Berhad agreed on 15 February 2023 to pay RM83.9 million (about US$19 million) for a 65% stake in The Inside Scoop Sdn Bhd. It bought 53% from existing shareholders for RM68.4 million (RM48.4 million in cash and RM20 million in 13.16 million new Farm Fresh shares at RM1.52 each) and subscribed for new shares equal to a further 12% for RM15.5 million. The deal completed in June 2023.
Who founded The Inside Scoop ice cream chain?
The Inside Scoop was founded in 2013 by husband-and-wife team Edmund Tan Jun Hua and Lim Shiew Li, who opened the first parlour in Bangsar, Kuala Lumpur. Before the Farm Fresh deal, Edmund Tan held 61% of the company, with Derrick Wu holding 37.9% and Harsh Rajpal 1.1%.
Does Farm Fresh own 100% of The Inside Scoop?
No. Farm Fresh held 65% after the 2023 deal. In August 2026 co-founder Edmund Tan exercised a put option requiring Farm Fresh to buy a further 20% for RM50.8 million, lifting Farm Fresh’s stake to 85%. Tan retains 15%.
How many outlets does The Inside Scoop have?
The Inside Scoop had 37 outlets when Farm Fresh announced the acquisition in February 2023. By 2026 it operated more than 70 scoop shops across Malaysia, according to its official website and The Edge Malaysia.
What other ice cream companies has Farm Fresh acquired?
After The Inside Scoop, Farm Fresh bought 70% of popsicle maker Sin Wah Ice Cream for RM28.4 million in October 2023 and announced the acquisition of Sabah-based Amelia Ice Cream for RM35 million in May 2026. It also launched its own packaged ice cream brand, Cream Hauz, in August 2024.
What was The Inside Scoop valued at?
The 2023 deal valued The Inside Scoop at about RM129 million, roughly 16.5 times its FY2022 net profit of RM7.8 million. The RM50.8 million paid for 20% in August 2026 implies an equity value of about RM254 million, almost double the 2023 figure.
Related
- M&A & Investment Insights — Malaysia and ASEAN consumer deals, profiles and companies to watch
- Farm Fresh Berhad company profile — the acquirer’s full history, financials and regional expansion
- Hextar Industries and llaollao operator Woodpeckers — another founder-led F&B stake deal
- InNature’s Burger & Lobster acquisition (retrospective) — a listed consumer group moving into foodservice
- ZUS Coffee’s RM250 million investment — growth capital for a Malaysian F&B brand
- Private Label vs National Brands: The Global Shift Retailers Are Driving
Sources
- Farm Fresh Berhad — official website
- The Inside Scoop — official website
- The Edge Malaysia — Farm Fresh to acquire 65% stake in The Inside Scoop for RM83.9m (15 February 2023)
- The Malaysian Reserve — Farm Fresh scoops up ice cream chain The Inside Scoop for RM84m (16 February 2023)
- Vulcan Post — Farm Fresh to acquire majority stake in Inside Scoop (February 2023)
- New Straits Times — Farm Fresh’s acquisition of Inside Scoop earnings accretive, says Maybank IB (February 2023)
- New Straits Times — Farm Fresh mulls over ‘exciting’ Inside Scoop–Jom Cha venture (February 2023)
- The Star — Farm Fresh entry into Inside Scoop a sweet deal (7 June 2023)
- The Edge Malaysia — Farm Fresh’s ice cream push (2025)
- BusinessToday — Farm Fresh saw FY26 revenue hit RM1 billion, PAT up 20% to RM129 million (22 May 2026)
- The Edge Malaysia — Farm Fresh to acquire Sabah ice cream brand (22 May 2026)
- The Edge Malaysia — Farm Fresh to buy another 20% of Inside Scoop from co-founder for RM50.8 mil (28 August 2026)
- New Straits Times — Farm Fresh’s Inside Scoop stake increased to 85pct following Tan’s put option (August 2026)
- The Edge Malaysia — Farm Fresh to raise up to RM200 mil via private placement (3 September 2026)
Disclaimer: This article is for informational and editorial purposes only. It is not a recommendation to buy or sell any securities and does not constitute investment advice.
