KUALA LUMPUR: Despite offering 10 sen more per share, the Malay Chamber of Commerce Malaysia’s (MCCM) bid to acquire Kulim (M) Bhd’s 58.68% stake in QSR Brands Bhd faces a largely muted response from investors.
QSR closed five sen higher to RM6.50 yesterday with 927,200 shares traded. Kulim ended one sen lower to RM4.31 with 1.6 million shares transacted. KFC Holdings (M) Bhd (KFCH), a unit of QSR, gained two sen to RM3.82 with 1.4 million shares traded.
The FBM KLCI edged up 0.3 of a point to close at 1,522.29 yesterday.
Kulim on Tuesday announced that MCCM had offered to buy its 58.68% stake in QSR for RM6.90 a share, rivalling an earlier RM6.80 offer by Massive Equity Sdn Bhd, a joint vehicle between Kulim’s ultimate parent Johor Corp and private equity firm CVC Capital Partners.
Massive Equity was offering to buy all of the assets and liabilities of both QSR and KFCH, which worked out to cost more than RM5.3 billion excluding warrants. In comparison, MCCM’s offer is only for Kulim’s stake in QSR, although such acquisition will eventually trigger a general offer for QSR and hence KFCH.
The boards of QSR and KFCH had said they were not seeking an alternative bids for the sale of their assets and liabilities after both companies accepted a joint takeover offer by Massive Equity end of last year.
However, they noted that the takeover offer from Massive Equity was subjected to “further negotiations and mutual agreement on terms and conditions to be incorporated into the definitive sale and purchase agreement”.
This article appeared in The Edge Financial Daily, January 12, 2012.
QSR closed five sen higher to RM6.50 yesterday with 927,200 shares traded. Kulim ended one sen lower to RM4.31 with 1.6 million shares transacted. KFC Holdings (M) Bhd (KFCH), a unit of QSR, gained two sen to RM3.82 with 1.4 million shares traded.
The FBM KLCI edged up 0.3 of a point to close at 1,522.29 yesterday.
Kulim on Tuesday announced that MCCM had offered to buy its 58.68% stake in QSR for RM6.90 a share, rivalling an earlier RM6.80 offer by Massive Equity Sdn Bhd, a joint vehicle between Kulim’s ultimate parent Johor Corp and private equity firm CVC Capital Partners.
Massive Equity was offering to buy all of the assets and liabilities of both QSR and KFCH, which worked out to cost more than RM5.3 billion excluding warrants. In comparison, MCCM’s offer is only for Kulim’s stake in QSR, although such acquisition will eventually trigger a general offer for QSR and hence KFCH.
The boards of QSR and KFCH had said they were not seeking an alternative bids for the sale of their assets and liabilities after both companies accepted a joint takeover offer by Massive Equity end of last year.
However, they noted that the takeover offer from Massive Equity was subjected to “further negotiations and mutual agreement on terms and conditions to be incorporated into the definitive sale and purchase agreement”.
This article appeared in The Edge Financial Daily, January 12, 2012.
