Highlight Brahim's in talks to sell sugar business

by **Cals** Fri 20 Jun 2014, 01:48

Highlight Brahim's in talks to sell sugar business

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Thursday, 19 June 2014 14:32

KUALA LUMPUR (June 19): Brahim's Holdings Bhd is in talks with interested parties to dispose of its sugar business, according to executive chairman Datuk Ibrahim Ahmad Badawi.

Speaking to reporters after Brahim's annual general meeting today, Ibrahim said the company was reassessing the viability of the business due to intense competition in the market.

“We’re assessing this as too many licenses have been given out to companies to import sugar. More and more people are coming into the sugar business and that upsets the market.

"We’re wondering where we would stand if we continue on,” Ibrahim said.

Brahim’s sugar venture comes under its 60%-owned subsidiary Admuda Sdn Bhd.
Admuda is supposed to build a sugar refinery within the Demak Laut Industrial Park in Sarawak. The refinery is expected to be completed by the end of 2015.

Today, Ibrahim said Brahim's, an in-flight catering-service provider, had received some offers for its sugar business, although the firm had yet to make any firm decisions.

“We have got some offers, and some people are currently discussing with us. But we have not made any firm decisions for the moment,” he said.

Ibrahim declined to specify who Brahim was negotiating with and whether talks were close to completion. He, however, said the issue was being discussed at Brahim's shareholder meetings.

“I don’t think I can say much on this, but this is an issue which is being discussed at every shareholder’s meeting on how we can handle this.

"It all depends on how things progress,” said Ibrahim.

Elaborating on why Brahim had decided to venture into the sugar business in the first place, Ibrahim said the company’s internal demand for sugar was high due to its airline-catering business, and supply to military contractors.