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Berjaya Food eyes bigger bite
Berjaya Food eyes bigger bite
By Sharen Kaur
Published: 2011/02/19
Berjaya Food Bhd (BFood), which runs the Kenny Rogers Roasters (KRR) restaurant chain in Malaysia, may buy other food businesses under the Berjaya Group to expand.
The food group launched its initial public offering (IPO) yesterday, which means that investors will get the chance to have a bite of the KRR business.
Berjaya, controlled by tycoon Tan Sri Vincent Tan Chee Yioun, holds the franchise for KRR, Krispy Kreme Doughnuts, Starbucks Coffee, Wendy's and Papa John's Pizza.
BFood executive chairman Datuk Robin Tan Yeong Ching said it may even buy rival food chains.
"This is a long-term plan. At the moment, there is nothing on the table. Our immediate focus will be to grow the KRR chain here," he said yesterday in Kuala Lumpur after launching BFood's prospectus.
BFood now owns 52 KRR stores in various malls in Malaysia. On top of that, it also has 13 franchised outlets.
BFood chief executive officer Datuk Francis Lee said it plans to open eight to 10 new outlets or more a year, provided there are good locations. This would mean a minimum investment of RM6 million a year.
However, it will not open any under franchising to control the operations, Lee said.
The IPO entails an offer for sale of 35.8 million shares of 50 sen each, priced at 51 sen. This means the IPO will raise RM18.3 million and the money will be pocketed by parent Berjaya Group. The listing on Bursa Malaysia's Main Market is scheduled on March 8.
BFood has hired AmInvestment Bank Bhd to arrange the IPO.
Lee said upon listing, BFood will have RM26 million in cash to fund its outlet expansion and he expects the company to do better this year.
"Most of our KRR outlets are profitable. We have some stores that are not doing well but it is not bleeding so badly. We are finding ways to improve all our outlets such as introducing tea-time menu, home delivery and takeouts," Lee said.
For fiscal year April 30 2010, BFood registered a net profit of RM8.7 million on revenue of RM60.4 million. The first restaurant was opened in 1994.
Berjaya Food eyes bigger bite
By Sharen Kaur
Published: 2011/02/19
Berjaya Food Bhd (BFood), which runs the Kenny Rogers Roasters (KRR) restaurant chain in Malaysia, may buy other food businesses under the Berjaya Group to expand.
The food group launched its initial public offering (IPO) yesterday, which means that investors will get the chance to have a bite of the KRR business.
Berjaya, controlled by tycoon Tan Sri Vincent Tan Chee Yioun, holds the franchise for KRR, Krispy Kreme Doughnuts, Starbucks Coffee, Wendy's and Papa John's Pizza.
BFood executive chairman Datuk Robin Tan Yeong Ching said it may even buy rival food chains.
"This is a long-term plan. At the moment, there is nothing on the table. Our immediate focus will be to grow the KRR chain here," he said yesterday in Kuala Lumpur after launching BFood's prospectus.
BFood now owns 52 KRR stores in various malls in Malaysia. On top of that, it also has 13 franchised outlets.
BFood chief executive officer Datuk Francis Lee said it plans to open eight to 10 new outlets or more a year, provided there are good locations. This would mean a minimum investment of RM6 million a year.
However, it will not open any under franchising to control the operations, Lee said.
The IPO entails an offer for sale of 35.8 million shares of 50 sen each, priced at 51 sen. This means the IPO will raise RM18.3 million and the money will be pocketed by parent Berjaya Group. The listing on Bursa Malaysia's Main Market is scheduled on March 8.
BFood has hired AmInvestment Bank Bhd to arrange the IPO.
Lee said upon listing, BFood will have RM26 million in cash to fund its outlet expansion and he expects the company to do better this year.
"Most of our KRR outlets are profitable. We have some stores that are not doing well but it is not bleeding so badly. We are finding ways to improve all our outlets such as introducing tea-time menu, home delivery and takeouts," Lee said.
For fiscal year April 30 2010, BFood registered a net profit of RM8.7 million on revenue of RM60.4 million. The first restaurant was opened in 1994.
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