KPF ups stake in Brahim's

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KUALA LUMPUR (Sept 22): Koperasi Permodalan FELDA Malaysia Bhd (KPF) has bought one million shares in Brahim’s Holdings Bhd last Friday.

KPF now has a direct 6.47% equity interest, or 15.28 million shares, in the airline caterer after the share purchase.

KPF has been accumulating shares in Brahim. It bought some 1.7 million shares in Brahim’s at the beginning of this month.

The Edge Weekly reported last week that Brahim’s is in negotiations to purchase fast food chain Burger King from Ekuiti Nasional Bhd (Ekuinas).

The company told the stock exchange last week that it was exploring the business opportunity and engaging in preliminary discussions to buy the Burger King franchise, but has yet to enter any definitive agreement on the acquisition.

Brahim’s share price has encountered its fair share of upheavals recently. Its share price fell on news that Malaysian Airline System Bhd (MAS) planned to renegotiate the supply contract between them.

MAS, which is on course for privatisation, is Brahim’s largest customer for its in-flight meals business.

Brahim’s supply meals to the national carrier through its 70% unit Brahim’s Airline Catering Sdn Bhd. MAS holds the remainder 30% equity.

The stock has tumbled from the peak of RM2.70 in early March to a low of RM1.20 early this month. It was unchanged today at RM1.30, giving it a market capitalisation of RM314.26 million.