7-Eleven to dispose of entire 75% stake in Caring Pharmacy for RM637.5mil

KUALA LUMPUR: 7-Eleven Malaysia Holdings Bhd (SEM) has received an offer from BIG Pharmacy Healthcare Sdn Bhd to acquire its entire 75% equity interest in Caring Pharmacy Group Bhd for RM637.5mil.

In a filing with Bursa Malaysia, SEM said its wholly-owned subsidiary Convenience Shopping (Sabah) Sdn Bhd (CSSSB) received a binding term sheet from BIG Pharmacy for the proposed disposal.

It said the included the acquisition by BIG Pharmacy of all Caring's subsidiaries and associated companies, which own and operate the retail pharmacy businesses under the 'CARiNG', 'Georgetown' and 'Wellings' brands, as well as any manufacturing and distribution of in-house products in Malaysia .

“The offer includes the acquisition of all intellectual property rights currently owned and utilised by the Caring Group and the Indonesian businesses, including the three brands and all in-house brands sold by the Caring group but excludes those in Indonesia operated by PT Era Caring Indonesia and PT Era Farma Indonesia,” it added.

Caring is a 75%-owned subsidiary of CSSSB, which in turn is a wholly-owned subsidiary of SEM. Motivasi Optima Sdn Bhd owns the remaining 25% equity interest in Caring.

The ultimate shareholders of BIG Pharmacy are the founding family who collectively owns 65% equity interest in BIG Pharmacy and Creador V L.P. who owns 35% equity interest in BIG Pharmacy.

BIG Pharmacy was co-founded by Lee Meng Chuan and Lim Sin Yin, Malaysian pharmacists, who have grown the business of ‘BIG’ in the Klang Valley to all across Malaysia.

“The proposed disposal provides an opportunity for the company to unlock and monetise its investment in Caring. The company is expected to record a one-off gain from the proposed disposal and thereby is expected to improve the net assets of the company and its subsidiaries.

“After the proposed disposal, the management of the company is able to redirect its resources to grow its convenience store business,” SEM said.