Read more: http://www.btimes.com.my/articles/20111229231159/Article/
Kuala Lumpur: Johor Corporation Bhd (JCorp) is unlikely to accept a hastily planned competitive bid to buy Kulim (M) Bhd's stake in QSR Brands Bhd and its fast food unit, KFC Holdings Bhd (KFCH). The Malay Chamber of Commerce Malaysia (DPMM) said yesterday it was rounding up "friendly parties" to jointly buy Kulim's interests in QSR Brands Bhd and its unit, KFCH, even after the company had said it was not seeking other bids after accepting the one made by Massive Equity Sdn Bhd (MESB). MESB is a special purpose vehicle and a joint-venture between JCorp and global private equity firm, CVC Capital Partners. It made an offer to take KFCH and its parent, QSR, private for about RM5.2 billion early this month. CVC would eventually hold a 49 per cent stake in both businesses, which operate over 900 KFC outlets and Pizza Hut fast-food outlets in Malaysia, Singapore, Brunei and India. JCorp will hold the rest. DPMM president Syed Ali Alattas told a news conference that the chamber was inviting agencies such as Felda, Tabung Haji and probably Amanah Saham Mara to bid for Kulim's stake in QSR and KFCH, supposedly to keep outsiders out of the lucrative fast food business. However, JCorp had earlier said it will not sell its stake in MESB to "outsiders" and that CVC was roped in because of its expertise in the food business. JCorp, a Johor state investment agency, had also said earlier that the privatisation of QSR and KFCH forms part of a larger plan to reconstruct the debt-laden group into a leaner and more focused entity, with Kulim eventually being able to concentrate on the plantation business. Syed Ali said the chamber has forwarded a letter on its proposal to buy Kulim's shares in QSR to JCorp. He said the letter was also copied to Prime Minister Datuk Seri Najib Razak. At the same time, he said DPMM was writing a letter to Tabung Haji, urging them not to sell their 20 per cent stake in QSR. At the same time, he said DPMM was writing a letter to Tabung Haji, urging them not to sell their 20 per cent stake in QSR. Syed Ali said it would be much cheaper if the chamber and the interested agencies buy Kulim's share in QSR, rather than through such proposed privatisation plan. "We just need to fork out about RM1 billion if we buy Kulim's share in QSR as compared to RM5.2 billion if we were to go through such privatisation plan," he said. Kulim holds a 57 per cent equity interest in QSR, while QSR has about 50 per cent stake in KFCH. JCorp, meanwhile holds a 56 per cent stake in Kulim. "In fact, we are willing to pay extra 10 sen at RM6.90 per share for Kulim's shares," Syed Ali said. He challenged JCorp management to explain how its privatisation plan with CVC would ease its debt, which stands about RM3.6 billion whereas the agency needs to fork out almost RM2.7 billion to buy Kulim's interests in QSR and KFCH shares. "Under the privatisation, they need RM5.2 billion and by holding a 51 per cent stake in MESB, JCorp need to secure almost RM2.7 billion," he said.
Kuala Lumpur: Johor Corporation Bhd (JCorp) is unlikely to accept a hastily planned competitive bid to buy Kulim (M) Bhd's stake in QSR Brands Bhd and its fast food unit, KFC Holdings Bhd (KFCH). The Malay Chamber of Commerce Malaysia (DPMM) said yesterday it was rounding up "friendly parties" to jointly buy Kulim's interests in QSR Brands Bhd and its unit, KFCH, even after the company had said it was not seeking other bids after accepting the one made by Massive Equity Sdn Bhd (MESB). MESB is a special purpose vehicle and a joint-venture between JCorp and global private equity firm, CVC Capital Partners. It made an offer to take KFCH and its parent, QSR, private for about RM5.2 billion early this month. CVC would eventually hold a 49 per cent stake in both businesses, which operate over 900 KFC outlets and Pizza Hut fast-food outlets in Malaysia, Singapore, Brunei and India. JCorp will hold the rest. DPMM president Syed Ali Alattas told a news conference that the chamber was inviting agencies such as Felda, Tabung Haji and probably Amanah Saham Mara to bid for Kulim's stake in QSR and KFCH, supposedly to keep outsiders out of the lucrative fast food business. However, JCorp had earlier said it will not sell its stake in MESB to "outsiders" and that CVC was roped in because of its expertise in the food business. JCorp, a Johor state investment agency, had also said earlier that the privatisation of QSR and KFCH forms part of a larger plan to reconstruct the debt-laden group into a leaner and more focused entity, with Kulim eventually being able to concentrate on the plantation business. Syed Ali said the chamber has forwarded a letter on its proposal to buy Kulim's shares in QSR to JCorp. He said the letter was also copied to Prime Minister Datuk Seri Najib Razak. At the same time, he said DPMM was writing a letter to Tabung Haji, urging them not to sell their 20 per cent stake in QSR. At the same time, he said DPMM was writing a letter to Tabung Haji, urging them not to sell their 20 per cent stake in QSR. Syed Ali said it would be much cheaper if the chamber and the interested agencies buy Kulim's share in QSR, rather than through such proposed privatisation plan. "We just need to fork out about RM1 billion if we buy Kulim's share in QSR as compared to RM5.2 billion if we were to go through such privatisation plan," he said. Kulim holds a 57 per cent equity interest in QSR, while QSR has about 50 per cent stake in KFCH. JCorp, meanwhile holds a 56 per cent stake in Kulim. "In fact, we are willing to pay extra 10 sen at RM6.90 per share for Kulim's shares," Syed Ali said. He challenged JCorp management to explain how its privatisation plan with CVC would ease its debt, which stands about RM3.6 billion whereas the agency needs to fork out almost RM2.7 billion to buy Kulim's interests in QSR and KFCH shares. "Under the privatisation, they need RM5.2 billion and by holding a 51 per cent stake in MESB, JCorp need to secure almost RM2.7 billion," he said.
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