Brahim’s in talks with MAS to extend date for new agreement

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KUALA LUMPUR: Brahim’s Holdings Bhd has confirmed it is still in discussions with Malaysian Airline System Bhd (MAS) to mutually extend the cut-off date for talks on the former’s new catering agreement.

This confirms a report by The Edge Financial Daily published yesterday which stated negotiations for a new catering agreement have yet to be concluded, despite having exceeded the revised April 30 cut-off date.

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 (BAC), is still engaged in discussions to mutually extend the new cut-off date for the agreement, which expired on April 30, 2015.

“The company will make further announcement on the developments,” it said.

On April 1, both Brahim’s and MAS agreed to extend the cut-off date for talks on the new catering agreement from March 31 to April 30.

The Edge weekly reported on March 30 that the reason for the delay was MAS and Khazanah Nasional Bhd having yet to agree on the billing method for the in-flight meals.

To recap, Brahim’s and the national carrier had entered into a settlement agreement in February to pave the way for the settlement of certain disputes and the negotiation of a new catering agreement to replace the existing contract.

Some analysts noted that the delay in the conclusion of a new catering agreement might not augur well for Brahim’s, which already faces tight cash flow problems.

Brahim’s share price closed up 4.44% at 94 sen, with a market capitalisation of RM222.11 million.

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This article first appeared in The Edge Financial Daily, on May 8, 2015.