KUALA LUMPUR (Mar 9): Brahim’s Holdings Bhd said it is currently in negotiation to acquire a local food and beverage (F&B) company, but stopped short of confirming it is TCRS Restaurants Sdn Bhd.

The Edge Weekly had over the weekend, reported the inflight caterer was eyeing to acquire TCRS which owns and operate The Chicken Rice Shop, Sweet Chat and Dubu-Dubu in Malaysia. It is also the co-owner of Pancake House International.

In a filing with Bursa Malaysia today, Brahim's (fundamental: 0.35; valuation: 1.2) said, "We wish to confirm that Brahim's is currently in negotiation to acquire a local F&B company."

"The board of directors of Brahim's always strive to create and increase the shareholders' value. However, at this juncture, terms and conditions of the proposed acquisition have yet to be agreed upon.

"Once the terms and conditions have been agreed and an agreement has been executed for the proposed acquisition, the company shall make an immediate announcement, which shall be in compliance with the Main Market Listing Requirements of Bursa Malaysia," it said, adding that the proposed acquisition may or may not materialise.

The Edge had reported Brahim’s is likely to acquire a stake in TCRS, rather than acquire the entire company.

Brahim’s had earlier failed to acquire the Burger King franchise in Malaysia and Singapore, from Ekuiti Nasional Bhd for RM95 million, after 90% of its shareholders voted against the proposal.

Brahim’s shares were last traded at 86 sen, before trading was suspended last Friday (March 6). Its market capitalisation stood at RM203.21 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)