By Sharen Kaur
Published in NST on November 28, 2014
BRAHIM’S Holdings Bhd (BHB) says its interest in the Burger King franchise in Malaysia and Singapore will help to reduce its dependency on in-flight catering.
According to founder and executive chairman Datuk Seri Ibrahim Ahmad, the Burger King franchise will contribute around RM300 million to the company’s revenue next year.
“This is part of our efforts to reduce our dependency on in-flight kitchen, which currently contributes a bulk to our net profit and revenue. We want diversification and not to be over dependent on one sector,” Ibrahim told Business Times.
BHB provides in-flight catering to Malaysia Airlines (MAS), AirAsia and 34 foreign airlines at the Kuala Lumpur International Airport and Penang International Airport.
MAS alone accounts for 75 per cent and 90 per cent of Brahim’s revenue and profit, respectively.
BHB’s 70 per cent-owned Brahim’s Airline Catering Sdn Bhd holds a 25-year concession to supply in-flight meals to MAS.
BHB’s net profit for the first six months ended June 30 2014 was higher at RM5.72 million from RM3.69 million a year ago.
The company has acquired the Burger King franchise from Ekuiti Nasional Bhd (Ekuinas) for RM95 million.
The investment was made via its wholly-owned unit, Brahim’s Trading Sdn Bhd, which holds 80 per cent interest in a special purpose vehicle (SPV) leading the acquisition.
Quantum Angel Sdn Bhd, a private equity firm managed by Zulu Capital Sdn Bhd which is led by Datuk Ahmad Zaki Zahid, holds 20 per cent of the SPV.
Ibrahim said that there are around 54 Burger King outlets in Malaysia and some 38 in Singapore, and the numbers would be increased annually.
“That would give us additional revenue from 2016 onwards. We are quite positive on the fast food business,” Ibrahim said, adding that at a later stage, BHB will divest up to 40 per cent equity in the SPV to strategic co-investors.
“There are a few interested parties who want to come into this venture and together we will expand the business,” he said
Published in NST on November 28, 2014
BRAHIM’S Holdings Bhd (BHB) says its interest in the Burger King franchise in Malaysia and Singapore will help to reduce its dependency on in-flight catering.
According to founder and executive chairman Datuk Seri Ibrahim Ahmad, the Burger King franchise will contribute around RM300 million to the company’s revenue next year.
“This is part of our efforts to reduce our dependency on in-flight kitchen, which currently contributes a bulk to our net profit and revenue. We want diversification and not to be over dependent on one sector,” Ibrahim told Business Times.
BHB provides in-flight catering to Malaysia Airlines (MAS), AirAsia and 34 foreign airlines at the Kuala Lumpur International Airport and Penang International Airport.
MAS alone accounts for 75 per cent and 90 per cent of Brahim’s revenue and profit, respectively.
BHB’s 70 per cent-owned Brahim’s Airline Catering Sdn Bhd holds a 25-year concession to supply in-flight meals to MAS.
BHB’s net profit for the first six months ended June 30 2014 was higher at RM5.72 million from RM3.69 million a year ago.
The company has acquired the Burger King franchise from Ekuiti Nasional Bhd (Ekuinas) for RM95 million.
The investment was made via its wholly-owned unit, Brahim’s Trading Sdn Bhd, which holds 80 per cent interest in a special purpose vehicle (SPV) leading the acquisition.
Quantum Angel Sdn Bhd, a private equity firm managed by Zulu Capital Sdn Bhd which is led by Datuk Ahmad Zaki Zahid, holds 20 per cent of the SPV.
Ibrahim said that there are around 54 Burger King outlets in Malaysia and some 38 in Singapore, and the numbers would be increased annually.
“That would give us additional revenue from 2016 onwards. We are quite positive on the fast food business,” Ibrahim said, adding that at a later stage, BHB will divest up to 40 per cent equity in the SPV to strategic co-investors.
“There are a few interested parties who want to come into this venture and together we will expand the business,” he said
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