KUALA LUMPUR, Dec 29 — The Malay Chamber of Commerce Malaysia (DPMM) said today it will make an offer for Kulim Bhd’s entire stake in QSR Brands Bhd to protect Bumiputera interests in KFC Holdings Malaysia Bhd (KFCH).
Kulim owns 57.5 per cent of QSR, which in turn has a 50.6 per cent stake in cash cow KFCH.
Johor Corporation Bhd (JCorp), which has a majority stake in Kulim, proposed on December 14 with international private equity firm CVC Capital Partners Asia Pacific to privatise KFCH and QSR for an estimated RM5.24 billion, or RM4 per KFCH share and RM6.80 per QSR share.
DPMM president Syed Ali Alattas (picture) said today the chamber was willing to match the RM6.80 per QSR share offer and may go up to RM6.90 per share.
“It stops it from going into the hands of outsiders...,” he told reporters at DPMM’s office today.
“What we’re talking about here today is justice. We want all Malaysians to practise justice.”
He said the chamber would borrow to meet the funding as well as approach Tabung Haji, Felda and Amanah Saham Mara to help finance the bid, expected to cost over RM1 billion.
Bernama, quoting an unnamed analyst, reported earlier this month that Felda was keen on buying JCorp’s share in QSR and KFCH.
Syed Ali also said DPMM would send a letter to Prime Minister Datuk Seri Najib Razak today announcing its interest in buying Kulim’s stake in QSR.
DPMM will recover the funds by franchising KFC to Bumiputera entrepreneurs who have expressed interest in the brand, he said.
“Once we franchise, the average KFC franchise is about RM500,000. With 1,000 outlets, that’s... good generation of income,” he said.
Syed Ali added that if Kulim did not wish to sell its stake in QSR to DPMM, the chamber was willing to work with them to manage the unit.
JCorp recently partnered private equity fund CVC to buy Kulim’s entire stake in QSR and KFCH which, the state investment agency said, would help address its 2012 debt obligations.
The proposed acquisition would also mark a step towards completing the rationalisation exercise being undertaken by JCorp, which would see Kulim exit the fast-food business to focus on its core plantation business.
The independent directors of both QSR and KFCH have approved the buyout offer and the companies will now have to call an EGM where at least 75 per cent of non-interested shareholders will have to vote in order for the deal to go through.
JCorp said the acceptance by directors was testimony that the proposal benefits all shareholders and an endorsement of JCorp’s rationalisation plan.
It added that the privatisation will not result in JCorp itself incurring more debt as funding for the transaction will be done on the strength of the future cash flow of the two businesses.
