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Friday, 6 July 2018

(NST) KUB Malaysia disposes of A&W for RM34m


KUALA LUMPUR: KUB Malaysia Bhd has disposed of A&W (Malaysia) Sdn Bhd to Inter Mark Resources Sdn Bhd for RM34 million. 

KUB said the disposal would enable it to realise its investment that was not considered as strategic and synergistic to its other operations and at the same time to focus on the core businesses.

KUB said its wholly-owned Restoran Kualiti Sdn Bhd had entered into the sale and purchase agreement with Inter Mark.

On the sales value, the RM30 million represents A&W Malaysia’s entire stake while RM4 million represents reimbursement of intercompany balances.

“The RM30 million for the equity portion is based on a willing buyer willing seller basis after taking into account the financial position and performance of A&W, its existing market position and prospects,” KUB said in a filing to Bursa Malaysia.

The parties had also taken into consideration the repayment of intercompany balances owed by A&W Malaysia to KUB Group of up to RM4 million, assumption of A&W Malaysia’s bank loan and the franchise fees payable to A Great American Brand International Pte Ltd, the company added.

Assuming the proposed disposal was completed on May 31, KUB said the group was expected to record a one-off estimated net gain of RM18.9 million.

“The estimated gain includes the reimbursement of intercompany balances of RM4 million. Based on the total share capital of KUB of 556,464,690 ordinary shares, the consolidated EPS and net assets per share of KUB is expected to increase by 3.4 sen,” it said.