7-Eleven unit sells 75% stake in Caring Pharmacy to Big Pharmacy for RM675mil

KUALA LUMPUR: 7-Eleven Malaysia Holdings Bhd's (SEM) wholly-owned subsidiary Convenience Shopping (Sabah) Sdn Bhd (CSSSB) will sell a 75 per cent stake in Caring Pharmacy Group Bhd (Caring) for RM675 million.

SEM said CSSSB has entered into a conditional sale and purchase agreement with BIG Pharmacy to dispose of its entire stake in Caring.

Motivasi Optima Sdn Bhd (MOSB) would also dispose of its 25 per cent stake in Caring to BIG Pharmacy, however, this is not part of SEM’s corporate exercise, it added.

"The company is expected to record an estimated one-off gain on disposal from the proposed disposal of RM251.16 million, thereby improving the net assets per share of the company to 0.34 sen from 0.12 sen as of Dec 31, 2022," SEM said in a stock exchange filing.

Upon the completion of the proposed disposal, the company said it would be able to focus its resources on growing its convenience store segment.

However, SEM said the proposed transaction did not include the disposal of the Indonesian businesses operated by Caring Group.

The group said the bulk of the RM675 million proceeds, comprising 61.66 per cent or RM416.19 million, will be used for its 7-CAFé store expansion, refurbishment of existing classic stores to the 7-CAFé format and convenience store-related infrastructure investments.

SEM said the proposed disposal was expected to be completed by the fourth quarter of 2023. - Bernama