Brahim’s confirms talk of buying Burger King

by **Cals** Tue 16 Sep 2014, 02:03

Business & Markets 2014

Written by Liew Jia Teng of theedgemalaysia.com

Monday, 15 September 2014 19:30

KUALA LUMPUR (Sept 15): In-flight caterer Brahim’s Holdings Bhd today revealed it has started preliminary discussions to buy the Burger King franchise.

This confirms The Edge weekly’s article titled “Brahim’s to buy Burger King franchise”, dated Sept 15-21, 2014.

In a filing with Bursa Malaysia, the in-flight catering company said it is now exploring the business opportunity of the possible acquisition and engaging in preliminary discussions on buying the fast food franchise.

But Brahim’s stressed it has yet to conclude or enter into any definitive agreement relating to the purchase of the franchise.

Should there be further development on this matter, Brahim’s said it will make the appropriate announcement to the stock exchange.

The Edge weekly’s report, citing industry sources, said Brahim’s was in talks with Ekuiti Nasional Bhd (Ekuinas) to buy the latter’s Burger King franchise.

Ekuinas has a 74.1% stake in Cosmo Restaurants Sdn Bhd — the franchise holder of Burger King in Malaysia; and wholly owns the franchise for Singapore under Burger King Singapore.

In September 2011, Ekuinas spent RM68.2 million on the Burger King franchise, when it injected capital into Cosmo Restaurants and took over the minority shareholders’ stake in Cosmo Restaurants.

Subsequently in December last year, Ekuinas injected an additional capital of RM48.8 million into Integrated Food Group Sdn Bhd, to buy the remaining 25.9% stake.

Collectively, the government-linked private equity fund has spent some RM117 million on the Burger King franchise.

Brahim’s shares went up 11 sen to close at RM1.35 today, giving it a market capitalisation of RM321.35 million.