Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 4): Brahim's Holdings Bhd's plan to supply food to 7-Eleven Malaysia Holdings Bhd's convenience store chain outlets appears to have been shelved after a preliminary agreement inked between the two groups' subsidiaries lapsed after close to two years.

Brahim's 51%-owned subsidiary Brahim’s SATS Food Services Sdn Bhd inked a Memorandum of Understanding with 7-Eleven's subsidiary 7-Eleven Malaysia Sdn Bhd on April 12, 2016, for the purpose of collaborating and cooperating in food chain supply.

But 7-Eleven announced on Bursa Malaysia today that "the MoU has lapsed and accordingly ceased to have any effect”.

When the MoU was first announced, 7-Eleven said BSFS would plan, develop, and create menu specifications and products to be marketed through 7-Eleven’s nationwide chain of convenience stores.

In return, 7-Eleven would provide a centralised distribution centre for BSFS to deliver all products manufactured by BSFS, and to arrange for the products delivery. A joint working group was also agreed to be created to oversee the smooth implementation of the MoU.

7-Eleven shares closed unchanged today at RM1.53, bringing it a market capitalisation of RM1.67 billion. Brahim's too was unchanged at 47 sen, giving it a market value of RM114.6 million.

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