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EPF joins JCorp in KFC, QSR acquisition

May 17, 2012

KUALA LUMPUR: The Employees Provident Fund (EPF) has joined Johor Corporation (JCorp) to become shareholders of Massive Equity Sdn Bhd (MESB).

MESB is a special purpose vehicle formed to undertake the acquisition of QSR Brands Bhd and KFC Holdings (M) Bhd.

In a statement, JCorp said with the signing of the shareholders’ agreement, JCorp maintains its 51% stake in MESB, while the EPF-led consortium makes up the remaining 49% via Melati Asia Holdings Ltd (MAHL).

It said MAHL is 51% owned by EPF, while Britain-based CVC Capital Partners (CVC) holds the rest.

Consequently, 76% of MESB is in Malaysian hands, it added.

On Dec 14, 2011, MESB announced its intention to acquire the entire business and undertakings of KFC at a price equivalent to RM4 per share and RM1 per warrant.

MESB also made a conditional offer to buy the business and undertakings of QSR at a price equivalent to RM6.80 per share and RM3.79 per warrant.

Kamaruzzaman Abu Kassim, president and CEO of Johor Corporation said, “We are heartened by EPF’s confidence in us and are honoured to have them as our partner at this exciting juncture in JCorp’s journey.”

“Indeed, EPF’s sterling track record as Malaysia’s premier retirement savings fund and an institutional investor puts us on a firmer footing to ensure greater corporate governance and continued growth for one of our prime investments,” he said.

Shahril Ridza Ridzuan, EPF deputy CEO for investment, said the EPF was confident that this investment in a highly cash generative business will meet its long-term goals of providing sustainable financial growth coupled with accretive yields.

“The KFC and Pizza Hut brands have been a market leader in Malaysia for decades and we look forward to enhancing the brands and their market share even further in future,” he said.

– Bernama


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