KUALA LUMPUR: Pan Malaysia Corporation Bhd (PMC) has proposed to acquire the remaining 49 per cent equity interest in fast-food chain operator A&W (Malaysia) Sdn Bhd from Inter Mark Resources Sdn Bhd, comprising 30.38 million ordinary shares, for RM69.45 million.
In a filing with Bursa Malaysia today, it said the exercise is to be satisfied via a combination of a cash payment of RM41.67 million and the issuance of 111.13 million ordinary shares in PMC at an issue price of 25 sen per consideration share.
The company said it also proposed diversification of the existing business of PMC and its subsidiaries to include the undertaking and provision of food and beverage (F&B) services and related activities.
"Premised on the positive outlook of the fast-food market in Malaysia, the board is optimistic of the long-term prospects and outlook of the A&W group and is of the opinion that the proposals are expected to contribute positively to the future earnings of the PMC group,” it said.
A&W restaurants are an American chain of fast-food restaurants distinguished by their burgers, hot dogs, fried chicken, root beer and root beer floats.
Currently, the A&W group operates 97 outlets in Peninsular Malaysia and three outlets in East Malaysia and is expected to continue its expansion in Malaysia with the aim of opening an additional 65 outlets by the year 2027.
To recap, on Sept 23, 2021, PMC entered into a sale and purchase agreement with Inter Mark to acquire 31.62 million A&W Malaysia shares, representing 51 per cent equity interest in A&W Malaysia for RM21.04 million.
Barring any unforeseen circumstances and subject to all relevant approvals being obtained, the proposals are expected to be completed in the first quarter of 2024. - Bernama