BCorp to list retail and food business subsidiaries separately
Filed Under (Business News) by Webmaster on 08-07-2010
Tagged Under : 7-eleven, BCorp, Kenny rogers roasters, papa johns, Singer
Berjaya Corp Bhd (BCorp) (3395), a diversified group, is planning separate listings of its retail and food businesses, said chairman and chief executive officer Tan Sri Vincent Tan.
Berjaya Retail Bhd (BRetail), which operates 7-Eleven and Singer businesses in Malaysia, will be the first to go for listing.
Tan said “After BRetail, we want to list Berjaya Food, hopefully by the end of this year”.
Berjaya Food Bhd holds the group’s Kenny Rogers Roasters and Papa John restaurant chain.
At the BRetail prospectus launch in Kuala Lumpur yesterday, it was stated that BCorp shareholders will be granted dividend-in-specie of one B-Retail share for every 10 existing RM1 share in BCorp.
BRetail’s tentative listing date is on August 16 2010 and the initial public offering (IPO) is set to raise between RM38.44 million and RM53.44 million.
Apart from the 100 million shares offered at 50 sen apiece, there are also five million irredeemable convertible preference shares at 50 sen apiece for subscription by staff of BCorp and BRetail.
“Over the years, we’ve helped expand the business of our principals Singer Asia Ltd and 7-Eleven Inc USA. We’re confident of sustaining growth in the retail industry,” said BRetail director Datuk Azlan Meah.
So far, Singer has about 560 branches, 3,500 sales agents and sales agent shops nationwide. The group plans to raise Singer branches and sales agent shops to 1,000 in the next five years.
With 1,127 stores, of which 38 are franchisees, 7-Eleven Malaysia Sdn Bhd managing director Ng Su Onn said the company aims to secure another 1,000 franchisees in five years.
At 50 sen a share, BRetail’s market capitalisation will amount to RM749 million. This is lower than the total purchase of 7-Eleven and Singer for RM960 million because BRetail will assume existing debts of RM211 million. It expects to settle the debt over time via dividend issuance.
Singer, which has direct sales licence from the Ministry of Domestic Trade, Co-operatives and Consumerism, sells sewing machines, washing machines, refrigerators, furniture and motorcycles.
It currently, has 3,500 sales agents operating from 561 branches throughout the country.
