Thursday 28 Mar 2024
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KUALA LUMPUR: Brahim’s Holdings Bhd and Malaysian Airline System Bhd (MAS) have extended their negotiations for a new catering agreement by another month to April 30.

This confirmed a report in the latest issue of The Edge weekly which stated that the negotiation of the new catering contract was unlikely to be concluded by the March 31 deadline. It was reported that a reason for the delay was that MAS and Khazanah Nasional Bhd had yet to agree on the billing method for the in-flight meals.

In a filing with Bursa Malaysia yesterday, Brahim’s (fundamental: 0.35; valuation: 1.2) said its 70%-owned subsidiary Brahim’s Airline Catering Sdn Bhd yesterday signed an extension agreement with MAS to facilitate negotiations for the new catering agreement to be executed between the two parties.

“The parties have agreed to extend the new catering agreement cut-off date from March 31 to April 30, 2015.

“The extension agreement is to give more time for the parties to negotiate and conclude the new catering agreement with a common goal to expedite the signing,” it said.

“The parties agreed in good faith to use all reasonable best efforts to complete the negotiations for the new catering agreement on or before the extended date,” Brahim’s added.

Brahim’s and the national carrier had earlier entered into a settlement agreement dated Feb 26, 2015, to provide for the settlement of certain disputes and the negotiations of a new agreement to replace the existing catering agreement. 

Brahim’s existing contract with MAS is for 25 years, which would expire in 2028.

Brahim’s shares closed unchanged at 84 sen yesterday, bringing a market capitalisation of RM198.48 million.


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. Go to www.theedgemarkets.com for more details on a company’s financial dashboard.

 

This article first appeared in The Edge Financial Daily, on April 2, 2015.

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