KUALA LUMPUR: KUB Malaysia Bhd’s wholly-owned subsidiary, Restoran Kualiti Sdn Bhd (RKSB), has disposed of its entire interest in A&W (Malaysia) Sdn Bhd to Inter Mark Resources Sdn Bhd for RM34 million.
The amount includes the reimbursement of inter-company balances of RM4 million to the KUB group.
In a filing with Bursa Malaysia today, KUB said the disposal would enable the group to focus on core businesses and to realise its investment, which was not considered as strategic or synergistic with the group’s operations.
It added that the disposal would have no material impact on the group’s gearing ratio.
KUB took over operations of A&W Malaysia in 2001. The corporation also owned the A&W franchise in Thailand.
Earlier this year, the group had received approval from the Petaling Jaya City Council (MBPJ) to demolish its A&W outlet on Jalan Sultan in Petaling Jaya, which had been there since 1965, to enable work for a high-rise project to commence on the site.
The outlet was the country’s first drive-in restaurant.
KUB had announced in 2014 that it was planning to develop the 0.4ha land to house two office towers called KUB Towers.
In January this year, KUB president and group managing director Abdul Rahim Mohd Zin was reported by The Edge as saying that too much capital investments were required to open new A&W outlets.
It then decided to focus its attention on the three new sectors which would require plenty of funds.
He said the company had as such decided to rationalise its capital expenditure, setting aside RM100 million for the purpose in 2018.
He said KUB had taken necessary steps to preserve the value of A&W Malaysia but hoped to sell the business before the franchise agreement expired in 2019 in order to maximise the value of the company.