This article first appeared in The Edge Financial Daily on January 5, 2018

KUALA LUMPUR: 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 (BSFS) inked a memorandum of understanding (MoU) 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 yesterday 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 to have been created to oversee the smooth implementation of the MoU.

7-Eleven shares closed unchanged yesterday 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.