Brahim's to venture into abattoir business in Australia

by **Cals** Tue 02 Dec 2014, 22:19

Brahim's to venture into abattoir business in Australia

KUALA LUMPUR (Dec 2): In-flight caterer Brahim's Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) announced that it is forming a joint-venture with an Australia-based company to develop an abbatoir in Cataby, Western Australia.
In a filing with Bursa Malaysia this evening, Brahim's said it has signed a memorandum of understanding (MOU) with Carpenter Beef Pty Ltd to form the joint venture (JV). It said it will take a 49% stake in the JV, while the remaining 51% will be held by Carpenter Beef.

Brahim's statement noted that it intends to up its stake in the JV to 51% once the abbatoir receives a "halal" certification from Jabatan Kemajuan Islam Malaysia. It added that the abattoir will meet regulatory requirements from China, the European Union and the US Department of Agriculture.

"The plant will have a capacity of 100,000 carcasses per annum on a single shift basis, with a 400 head per day capacity. The first stage of completion will produce a 4-way cut facility," the group said.

Brahim's added that the plant will be fully operational within six to nine months from investment date, with additional capital expenditure of A$15 million (RM43.70 million).

According to Brahim's, it will be the major off-taker for the products produced by the abattoir, while Carpenter Beef will operate and manage the cattle as feedstock, which include sourcing, procurement, custom feeding and agistment or holding of cattle.

The group added that the JV will allow future expansion and collaboration opportunities in breeding capabilities of high, medium and low value cattle, as well as partnership in feedlot development, management of farmland and open-range cattle farming.

"The MOU is not expected to immediately have material effects on the earnings per share, net assets per share, gearing, share capital and substantial shareholders' shareholding of Brahim's for the financial year ending Dec 31, 2014," it said.

Carpenter Beef supplies cattle to the live export trade and domestic beef to Australia's supermarkets. It also supplies high and medium value beef to the major Asian markets.

Brahim's is controlled by its executive chairman Datuk Seri Ibrahim Ahmad, with a 40.63% stake. Ibrahim is the brother of former Prime Minister Tun Abdullah Ahmad Badawi.

Brahim's closed 1 sen higher to RM1.39 today, giving it a market capitalisation of RM328.44 million.