Highlight Brahim's extends catering talks with MAS by another month, confirms The Edge’s report

by **Cals** Wed 01 Apr 2015, 22:59

Highlight
Brahim's extends catering talks with MAS by another month, confirms The Edge’s report

By Yimie Yong / theedgemarkets.com | April 1, 2015 : 7:30 PM MYT

KUALA LUMPUR (April 1): [size=14]Brahim's Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) and Malaysian Airline System Bhd (MAS) ([You must be registered and logged in to see this image.] Financial Dashboard) have extended their negotiations for a new catering agreement by another month to April 30, 2015.

This confirmed a report by The Edge Weekly on March 30, 2015, which stated the negotiation of the new catering contract was unlikely to be concluded by the March 31, 2015 deadline. It was reported a reason for the delay was that MAS and Khazanah Nasional Bhd have yet to agree on the billing method for the in-flight meals.

In a filing with Bursa Malaysia today, Brahim's (fundamental: 0.35; valuation: 1.2) said its 70%-owned subsidiary, Brahim’s Airline Catering Sdn Bhd (BAC), has yesterday (Tuesday, March 31) signed an extension agreement with MAS to facilitate negotiations for the new catering agreement to be executed between the two parties.

“The parties have agreed to extend the new catering agreement cut off date from March 31 to April 30, 2015.

"The extension agreement is to give more time for the parties to negotiate and conclude the new catering agreement with a common goal to expedite the signing," it said.

"The parties agreed in good faith to use all reasonable best efforts to complete the negotiations for the new catering agreement on or before the extended date," Brahim's added.

Brahim's and the national carrier had earlier entered into a settlement agreement dated Feb 26, 2015 to provide for the settlement of certain disputes and the negotiations of a new agreement to replace the existing catering agreement.

Brahim's shares closed unchanged at 84 sen today, bringing it to a market capitalisation of RM198.48 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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