PETALING JAYA: Power Root Bhd via its unit Power Root (M) Sdn Bhd has licensed its trademark rights of Ah Huat White Coffee to Ah Huat International Sdn Bhd (AHISB), in which the company has a 20% stake.
The cost of investment from Power Root in AHISB would be RM400,000, the company said.
“In return, the master licensee shall pay the licensor a royalty fee of 1.5% of gross sales of all outlets commencing from the start of the sixth year of the date of the master licence agreement,” it said in a filing with Bursa Malaysia.
The consideration from Power Root would be generated internally.
Power Root managing director Datuk Low Chee Yen and executive director Datuk Wong Fuei Boon each own a 35% stake in AHISB while the rest is held by Wong Tak Keong.
“Through the master licence agreement, the interested directors intends to undertake the food and beverage outlet business in their own personal capacity, thus limiting the group’s downside risk,” the company said.
Power Root’s Ah Huat White Coffee product range was launched locally in 2012 and in Singapore a year later.