Forget Password?
  1. Indices
  2. Commodities
  3. Currencies
Straits Times 3,368.44 -4.69 -0.14%
Hang Seng 28,524.04 +57.56 +0.20%
Dow Jones 27,349.19 +177.29 +0.65%
Shanghai Composite 2,923.28 +23.33 +0.80%
Brahim’s Receives Offer For Stake In Catering Business
Malaysia Daily Bulletin | 23 October 2015
  • Brahim’s Holdings has received an offer from Singapore’s SATS to acquire its 49 percent stake in Brahim’s Airline Catering Holdings (BACH) for RM218 million.
  • The consideration includes RM110 million that will be paid upon the completion of the transaction, plus an additional RM108 million if certain financial targets are met.
  • BACH in turn has a 70 percent stake in Brahim’s Airline Catering (BAC) – which holds the rights to supply food to MAS and other airlines operating out of KL International Airport – that is long considered a crown jewel of the group.
  • If the deal is successful, Brahim’s Holdings’ effective interest in BAC will reduce to 35.7 percent and SATS will hold 34.3 percent, while the remaining 30 percent is held by Malaysia Airlines.

Significance: While the group’s board will deliberate on whether to accept the offer, analysts have noted that the offer, which effectively puts a higher market price tag on Brahim’s, could be positive for its share price in the immediate term.

Join The Conversation
The Shares Investment editorial team welcomes constructive feedback on our coverage and content. We would also be delighted to answer any questions on the above article. Leave us a comment below, and we'll get back to you shortly!

All Rights Reserved. Pioneers & Leaders (Publishers) Pte Ltd. Best viewed with Mozilla Firefox 3.5 and above.