Brahim’s in talks to buy local F&B firm, confirms Edge report

by **Cals** Wed 11 Mar 2015, 03:28

Brahim’s in talks to buy local F&B firm, confirms Edge report

By Ahmad Naqib Idris / The Edge Financial Daily | March 10, 2015 : 9:33 AM MYT

KUALA LUMPUR: Inflight caterer [size=14]Brahim ([You must be registered and logged in to see this image.] Financial Dashboard)’s Holdings Bhd has confirmed that it is currently in talks to acquire a local food and beverage (F&B) company, but stopped short of naming it.

The Edge weekly, in its latest issue, reported sources as saying that Brahim’s had been in talks to acquire TCRS Restaurants Sdn Bhd in a bid to reduce its dependency on the catering business.

TCRS is the owner and operator of The Chicken Rice Shop, Sweet Chat and Dubu-Dubu in Malaysia, and is also the co-owner of Pancake House International.

“The board of directors of Brahim’s always strives to create and increase shareholders’ value. However, at this juncture, terms and conditions of the proposed acquisition have yet to be agreed upon.

“Once [they] have been agreed, and an agreement has been executed for the proposed acquisition, the company shall make an immediate announcement,” Brahim’s said in a brief filing with Bursa Malaysia yesterday.

It emphasised that the acquisition “may or may not” materialise.

Brahim’s (fundamental: 0.35; valuation: 1.2), whose shares took a beating last week after it agreed to less rosy interim terms with its biggest catering customer Malaysia Airlines ([You must be registered and logged in to see this image.] Financial Dashboard), last Friday morning requested a suspension of the trading in its shares until yesterday, pending “a material announcement”.

Brahim’s shares fell by 37.4% in the first four days of last week to hit a 22-month low of 82 sen last Thursday. They rose to 86 sen last Friday morning before being suspended.

This article first appeared in The Edge Financial Daily, on March 10, 2015.
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