BFoods may buy into Berjaya Group Berhad's s other food-related businesses such as Papa John's Pizza, Wendy's and Starbucks Coffee in the company's stable. So said its CEO, Francis Lee.
“Nothing at this stage yet but we will consider (it) when the opportunities arise,” Lee said at BFood prospectus launch yesterday.
He said BFood held the exclusive franchise for the development and operation of Kenny Rogers Roasters chain of restaurants in Malaysia.
“To date, there are 67 Kenny Rogers Roasters restaurants, of which 52 are owned by BFood while the remaining 13 are owned by independent franchisees,” he said.
Lee said BFood would also consider acquiring Kenny Rogers Roasters restaurants that were under the independent franchisees.
“We stopped the franchising of Kenny Rogers Roasters restaurants three years ago to have better control over our restaurants in terms of food products offering and service level,” he said.
Lee said the company planned to open eight to 10 new outlets every year and aimed to increase the number of restaurants to 67 by the end of its financial year ending April 30, 2012.
“The investment is about RM700,000 per outlet. Currently, all our restaurants are in shopping malls but we may also open at shoplots and small towns throughout Malaysia,” he said.
Lee said the local food service market was expected to grow in the coming years, driven by the increase in the average Malaysian consumption spending and the growing trend of eating out.
“Malaysian families are becoming increasingly health conscious. This augurs well for us as we have an established household name for serving healthy and wholesome meals,” he said.
BFood is scheduled to list on BSKL Main Board on March 8. It will have a market capitalisation of about RM72.1mil upon listing.
The flotation involves offer for sale of 35.8 million ordinary shares of 50 sen each, representing 25.35% equity interest in BFood, at an issue price of 51 sen per share.
The initial public offering (IPO) comprises 14.2 million shares for private placement to bumiputra investors approved by the Ministry of International Trade and Industry, 9.7 million shares for private placement to selected investors, 3.5 million shares for application by bumiputra public, 3.5 million shares for application by Malaysian public, and 4.9 million shares for application by eligible directors, employees and business associates of the BFood group.
Proceeds to be raised from the offer for sales which accrue to the offeror, Berjaya Group, amount to about RM18.3mil.
For the financial year ended April 30, 2010, BFood reported a net profit of RM8.7mil on the back of revenue of RM60.4mil.
