Brahim's puts acquisition on hold (9474)

Brahim's Holdings Bhd has placed on hold its proposed acquisition of the remaining 49 per cent of Brahim's-LSG Sky Chefs Holdings Sdn Bhd (BLSG) from LSG Asia GmbH.

Brahim's said shareholders deliberated on this acquisition at its
extraordinary general meeting (EGM) today, and voted to adjourn the EGM until there is greater clarity on the status of its catering agreement with Malaysia Airline System (MAS).

"MAS is BLSG's single largest customer in its in-flight catering
business and also a 30 per cent shareholder of LSG Sky Chefs-Brahim's Sdn Bhd (LSGB)," Brahim's said in a statement today.

Group Executive Chairman Datuk Ibrahim Ahmad said the proposed acquisition would have resulted in LSGB becoming a wholly-owned subsidiary of Brahim's.

"However, in light of what has transpired, we see it as prudent to seek further clarification on the intention of MAS with respect to the catering agreement it has with LSGB.

"Only then would we be able to consider the viability of this proposed acquisition," he said.

Brahim's is continuing to provide its in-flight catering services to MAS dspite the issue, he said.

"We are also supportive of the ongoing initiatives by MAS to turn around, and will be keen to collaborate with MAS in reviewing prices, food quality and presentation in line with its new branding effort.

"However, if the intention of MAS is to terminate the existing catering agreement, then it must be highlighted that the issue of financial compensation will arise," Ibrahim added. -- Bernama