KUALA LUMPUR (July 6): Restoran Kualiti Sdn Bhd (RKSB), a wholly-owned subsidiary of KUB Malaysia Bhd, entered into a sale and purchase agreement (SPA) today with Inter Mark Resources Sdn Bhd (IMRSB) for the disposal of its entire 100% interest in A&W (Malaysia) Sdn Bhd for RM34 million.
In a filing with Bursa Malaysia today, KUB said the proposed disposal is expected to record a one-off estimated net gain of about RM18.9 million, including the reimbursement of intercompany balances of RM4 million.
KUB said the RM34 million comprises of RM30 million for A&W’s entire equity interest and RM4 million for reimbursement of intercompany balances.
“The RM30 million for the entire interest is based on a willing buyer willing seller basis, after taking into account the financial position and performance of A&W, its existing market position and prospects.
“The parties had also taken into consideration the repayment of intercompany balances owed by A&W to KUB of up to RM4 million, an assumption of A&W’s bank loan and the franchise fees payable to A Great American Brand International Pte Ltd.”
Under this agreement, RKSB agreed to dispose its 61.41 million issued shares, representing a 100% equity interest in A&W, to IMRSB.
KUB said the proposed disposal will enable the group to realise its investment that is not strategic and synergistic to its other operations in the group, and at the same time, allows it to focus on the group’s core businesses.
Upon completion of the proposed disposal, A&W will cease to be a subsidiary of RKSB.
The proposed disposal is expected to be completed within three months from the date of the agreement. (There is a three-month extension option)
IMRSB is a private limited company whose principal shareholder, Ang Choon Yan, is the founder of a number of food and beverage businesses. He is the substantial shareholder of Revenue Valley Sdn Bhd, which has ties with Ekuinas, and operates Tony Roma's and The Manhattan Fish Market.
According to its website, A&W franchise was brought into Malaysia in 1963 by the Lie Boff family from the USA, and they opened their first outlet in Jalan Tuanku Abdul Rahman — the country’s first fast food outlet.
In 1965, this was followed by the first drive-in restaurant in Petaling Jaya.
A&W Malaysia was bought over by KUB in 2001 and today, has more than 39 outlets throughout the country.
KUB closed one sen or 3.23% higher today at 32 sen, for a market capitalisation of RM175.29 million.