JCorp to take QSR Brands private?

The exercise is imminent ... it could be as early as this week, says a source

Johor Corp Bhd (JCorp) plans to take QSR Brands Bhd private, people familiar with the matter said yesterday.

The deal may also involve KFC Holdings (M) Bhd, the source said.

“The exercise is imminent ... it could be as early as this week,” said a source.

At least two independent sources told Business Times that a deal was in the offing.

JCorp owns 53 per cent of Kulim Bhd, which in turn owns some 57.5 per cent of QSR. QSR, in turn, owns 50.6 per cent of KFC, the country’s top fast food operator.

“The deal could be done at the Kulim level, but JCorp is the driver for the exercise,” the source said.

Top executives of Kulim and QSR, however, said they had no knowledge on the matter.

“We at the operations side are not involved. We know nothing about it so we can’t give any comments,” QSR managing director Jamaludin Md Ali said, when contacted yesterday.

Kulim managing director Ahamad Mohamad also said he had no knowledge of the matter and declined to comment.

An insider in Kulim, meanwhile, said the matter had never been raised at the Kulim board level.

In April this year, the Malay Chamber of Commerce offered to buy stakes in Kulim through its Johor chapter.

The offer came months after Tan Sri Halim Saad had attempted to buy QSR’s business for RM1.62 billion.

The offer, which had valued QSR shares at RM5.60 a piece, was eventually turned down by the ultimate owners of QSR.

Halim’s November 2010 offer was not the only one on the table, as a slew of foreign firms, including venture capital companies, were said to have shown interest in QSR.

The Carlyle Group had offered RM6.70 a share to gain a 100 per cent control of QSR.

Others said to be interested in QSR at that point of time were CVC Capital Partners Asia Pacific, and even, perhaps, Kohlberg Kravis Roberts & Co, foreign reports suggest.

QSR is a much sought-after asset as whoever controls the company will have control over KFC.

KFC has franchises in Malaysia, Singapore, Brunei, Cambodia and India.

It also operates the home-grown RasaMas chain of restaurants and Ayamas kiosks, while QSR operates some 260 Pizza Hut restaurants in Malaysia and Singapore.

QSR shares closed 10 sen higher to RM6, while KFC shares closed 6 sen higher to RM3.41 yesterday.


Francis Fernandez and Azlan Abu Bakar, btimes.com.my