BCorp to grow Kenny Rogers in China

KUALA LUMPUR: Berjaya Corp Bhd (BCorp) is expanding its Kenny Rogers Roasters (KRR) chain of restaurants in China to tap the emerging economy’s huge population base.

Shareholders at BCorp’s EGM told The Edge Financial Daily yesterday that the company intends to set up new outlets in cities with populations of up to five million people each.

“They may have done the groundwork in China,” a shareholder said. He indicated that BCorp could use part of the proceeds from the sale of its 40% stake in Berjaya Sompo Insurance Bhd (BSompo) to finance its KRR ventures in China, the world’s second largest economy with a population of some 1.3 billion.

It was, however, uncertain at the time of writing how much money BCorp would pump in to grow its KRR chain in China and the number and location of outlets.

Tan is taking BRetail private just seven months after its listing.

Shamsul: If the proposal to set dividends at 30% is accepted, the amount paid out could be more or less than the current steady payout of RM30 billion.

BCorp officials declined to comment when approached after the shareholders’ meeting.

Last month, BCorp announced that Roasters Asia Pacific (HK) Ltd had obtained a business licence to establish a new wholly owned subsidiary, Kenny Rogers Roasters Catering (Shenzhen) Co Ltd (KRR Shenzhen), in Shenzhen, China.

KRR Shenzhen will be wholly owned by Roasters Asia Pacific, which is a 100%-owned subsidiary of BCorp.

According to BCorp, KRR Shenzhen plans to develop and operate the KRR chain of restaurants in China.

BCorp owns the global KRR brand through its subsidiary KRR International Corp. In April 2008, KRR International acquired the global brand, including its franchise rights, from US-based Nathan’s Famous Inc.

Berjaya Food Bhd (BFood), meanwhile, holds the exclusive franchise to develop and operate the KRR chain of restaurants in Malaysia. As at March 2011, BFood had 66 KRR outlets across Malaysia. The first restaurant was launched in 1994. BFood was listed on March 8 this year.

BCorp, via wholly owned Berjaya Capital Bhd, announced its intention last month to sell its 40% stake in BSompo to Sompo Japan Asia Holdings Pte Ltd (SJAH) for RM496 million cash or RM10.51 a share.

The seller said the disposal offered it a good opportunity to realise its investments in BSompo at an attractive price. BCorp had initially paid RM56.25 million to gain control of BSompo.

Upon completion of the disposal, SJAH will hold 70% equity interest in BSompo. As such, BSompo will then be a 30% associate company of BCorp.

BCorp had indicated that it planned to use proceeds from the sale of its stake in BSompo to finance its proposed development projects such as Berjaya Central Park, Berjaya Hills and Berjaya City, apart from the group’s food and beverage and automobile operations.

Another BCorp shareholder said the company plans to undertake a mixed development project, comprising industrial and residential properties in Batang Berjuntai, Selangor. He said the industrial portion was intended as a “motorcar manufacturing hub”.

“There will be houses as well in the development. And I think they will use the proceeds from BSompo to finance the development,” he said.

The conglomerate, via 51% subsidiary Changan Berjaya Auto Sdn Bhd, has been licensed by Chang’an Automobile Co Ltd — one of the largest manufacturers of passenger and commercial vehicles, buses besides special purpose vehicles in China­­ — to manufacture, assemble and distribute the Chana brand of motor vehicles in Malaysia.

Under a MoU between Changan Berjaya and regional market representatives, Malaysia will be made an export hub for the Chana right-hand drive vehicles for the Asean and African markets besides other right-hand drive vehicle countries.

Berjaya Brilliance Auto Sdn Bhd, a subsidiary of Changan Berjaya, has also been appointed to assemble and distribute Brilliance Jinbei commercial vans in Malaysia, and to export the vehicles across Southeast Asia.

BCorp, via subsidiary Berjaya Joy Long Auto Sdn Bhd (BJoy), has also signed a distributorship agreement with China-based Jiangsu Joylong Auto Co Ltd (JJA).
BJoy has been given the exclusive rights to sell, market and distribute JJA vehicles in Malaysia, Thailand, Indonesia, Vietnam, Cambodia and Laos.

Assembly and manufacturing of these vehicles is likely to be done in Malaysia.

BCorp has undertaken several notable corporate exercises involving its operating units in recent months.

Last November, BCorp said its subsidiary Inter-Pacific Securities Sdn Bhd (IPS), had signed an asset purchase agreement for the proposed sale of IPS’ existing business to a special purpose vehicle which would be jointly owned by IPS and Singapore’s Kim Eng Holdings Ltd.

On March 8, BCorp completed the listing of BFood which operates the KRR restaurants in Malaysia.

Three days later (March 11), the conglomerate’s founder and major shareholder Tan Sri Vincent Tan Chee Yioun announced his intention to privatise another of the group’s listed entities, Berjaya Retail Bhd (BRetail), which was floated some seven months earlier.

Tan, via Premier Merchandise Sdn Bhd, is making an offer to acquire the remaining BRetail shares and irredeemable convertible preference shares he does not own at 65 sen a piece.

BCorp closed up one sen to RM1.18 yesterday.

no wonder tis few days bjfood v active ... missed d news leh ...