7-Eleven Malaysia unit proposes to acquire 60% of Cafe Decoral

• Apr 19, 2018

PETALING JAYA: 7-Eleven Malaysia Holdings Bhd ’s unit, Convenience Shopping (Sabah) Sdn Bhd, is proposing to acquire a 60% stake in food supplier Cafe Decoral Sdn Bhd (CDSB) for RM600,000.

The stake is to be acquired from its vendors Ng Kin Chen, Ng Lee Chin and Public Yong Tow Foo Sdn Bhd.

CDSB is a food supplier of “ready to eat” fresh food such as fried fishballs, nasi lemak, fried rice and fried mee hoon to about 300 7-Eleven stores in the Klang Valley.

For CDSB’s financial year ended April 30, 2017 (FY17), it recorded an audited net profit of RM6,000 with audited net assets of RM187,000.

“CDSB has the management expertise and production resources to produce and develop fresh food to facilitate the fresh food sales in 7-Eleven stores,” the announcement on Bursa Malaysia said.

7-Eleven is planning to finance the acquisition through its internally generated funds.

The company said that there is no liability to be assumed from this acquisition.

The acquisition will also see CDSB’s founders Kin Chen and Lee Chin acquire from CDSB a three-storey freehold shophouse located at Batu Caves, Selangor, for RM250,000 within three months from the completion of this proposed acquisition, it said.

The said property has a net book value of RM108,543, the announcement added.

“Barring any unforeseen circumstances, the acquisition is expected to be completed in mid-2018. Upon completion of this acquisition, CDSB will become a 60%-owned subsidiary of 7-Eleven,” it said.

The planned acquisition is also not expected to have any material effect on 7-Eleven’s consolidated earnings, net assets and gearing for FY18 ending Dec 31.

Source: https://www.thestar.com.my/business/business-news/2018/04/19/7eleven-malaysia-unit-proposes-to-acquire-60-of-cafe-decoral/#pcmDrht0Ru0ObI29.99