BCorp: Right time to list F&B unit

from the star business online
BCorp: Right time to list F&B unit( but I have sold almost all BJcorp last few days!)
By DANNY YAP
danny@thestar.com.my
PETALING JAYA: Diversified group Berjaya Corp Bhd (BCorp) believes the “timing is right” for its food and beverage (F&B) business to be listed on Bursa Malaysia and the company plans to list the business under the name of Berjaya Food Bhd (BFood) by the second half of the year.
In an e-mail to StarBizWeek, the management of BCorp said it was timely to raise the profile of its Kenny Rogers Roasters (BRoasters) restaurant business via its listing.
BRoasters is 100%-owned by Berjaya Group Bhd, a wholly-owned subsidiary of BCorp and the proposal is to inject BRoasters into BFood, the yet-to-be-listed entity.
The management said the Roasters restaurant business had potential and expected its shares to appreciate over time with its listing on the exchange.
The first BRoasters was established in Malaysia way back in November 1994.
On whether other franchise chains of BCorp would be injected into BFood, the managemnet said: “We may consider if the franchise chains are ready and profitable. At present, only BRoasters is ripe for listing.”
The management said BRoasters’ revenue had grown from about RM23mil in the financial year ended April 30, 2005 (FY05) to about RM52mil in FY09. After-tax profit had increased from a mere RM1.5mil in FY05 to RM7.9mil in FY09 (excluding exceptional items).
A local analyst said BCorp could be on an acquisition trail to boost its F&B business via BFood.
“The company is using BRoasters and its assets as a vehicle to list under a new name (BFood) as BRoasters had the profitable track record to qualify for main board listing,” he said.
The analyst said it was likely that other F&B chains within the group and possibly F&B chains not within the group could be a target of acquisition to enhance the value of BFood over time.
“The acquisition can be ‘organic’ or F&B chains outside the group,” he said, adding that acqusition would be the fastest way to grow, provided the F&B chains acquired were profitable.
Currently, BCorp owns 47 restaurants and 16 independent franchisees that are mostly F&B related, including Starbucks, Wendy’s, Papa John’s Pizza and Krispy Kreme Doughnuts.
In addition, BCorp also owns KRR International Corp, the owner of the KRR brand worldwide.
The diversified group also has other businesses, including gaming outlets, property develoment, trading, insurance, among others.

DAIBOCHI, SEB,OVERSEA,BJ CORP,POS,SUPERMAX

from the EDGE
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2) contracts from major non-F&B companies
3) attractive dividend yields of 5-6%

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