Friday 29 Mar 2024
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KUALA LUMPUR (April 15): Brahim’s Holdings has signed a memorandum of understanding (MoU) with 7-Eleven Malaysia Holdings Bhd to supply food to the convenience store chain’s outlets.

A filing with Bursa Malaysia this afternoon said Brahim’s 51%-owned subsidiary Brahim’s SATS Food Services Sdn Bhd (BSFS, formerly Brahim’s Airline Catering Sdn Bhd) had on Apr 12 entered into the MoU with 7-Eleven Malaysia Sdn Bhd for the purpose of collaboration and cooperation in food chain supply.

Key points in the MoU stipulated that BSFS would plan, develop, and create menu specifications and products to be marketed through 7-Eleven’s nationwide chain of convenience stores. The latter will provide a centralised distribution centre for BSFS to deliver all products manufactured by BSFS, and to arrange for the products delivery.

“Both parties shall also continue to explore any other opportunity in other areas of business that may develop into continuous business relation or cooperation,” said Brahim’s.

The filing did not state the expenditure expected to be shelled out for this venture. Brahim’s however mentioned that the cooperative activities’ cost will be funded on terms to be mutually agreed by the two parties on a case-by-case basis. Brahim’s and 7-Eleven will also form a joint working group to make sure the implementation of this MoU goes well.

Brahim’s has been looking to enter new businesses related to food and beverage as its erstwhile major revenue driver, the in-flight catering service for the former Malaysian Airline System Bhd, became less lucrative when the national carrier renegotiated all of its contracts as part of its major restructuring move.

Brahim’s plan to purchase Rencak Selera Sdn Bhd, the company operating the loss-making Burger King chain in Malaysia, was outright rejected by shareholders at an extraordinary general meeting last year.

The stock rose half a sen upon noon break to 91.5 sen, valuing Brahim’s at RM216.2 million.

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