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KFCH Buys Four Poultry Firms

by 5m Editor
2 November 2010, at 9:46a.m.

MALAYSIA - KFC Holdings Bhd (KFCH) via its subsidiary, Ayamas Food Corporation Sdn Bhd (Ayamas), will acquire four poultry-related companies for 1.11 million ringitt (MYR) from Johor Corporation Bhd (JCorp).

In the Bursa filing, KFCH said the four companies are among seven intrapreneur farms in Sedenak Kulai, Johor, owned by Johor Franchise Development Sdn Bhd (Johor Franchise) and Johor Ventures Sdn Bhd (Johor Ventures), according to Business Times of Malaysia.

The remaining three farms are owned by Ayamas.

The company will acquire from Johor Franchise, a 90 per cent stake in Southern Poultry Sdn Bhd for MYR378,000, a 84.75 per cent stake in Synergy Poultry Sdn Bhd for MYR296,625, and a 90 per cent stake in Ventures Poultry Sdn Bhd for MYR378,000.

It will meanwhile, acquire the entire stake of Agrotech Farm Sdn Bhd from Johor Ventures for MYR1.

In view of the above structure, Ayamas has proposed to centralise and implement a corporate structure to manage all farms under the company to enable it to reap the advantages of a centralised structure.

The company said with a single corporate structure, it provides a platform for more effective resource planning, enabling the processing plant to meet the demand for its restaurant division and open market.

It said this can be done as all broilers from the farms are supplied to the Ayamas processing plant for slaughtering and further processes.

According to Business Times, Johor Ventures and Johor Franchise are wholly-owned subsidiaries of JCorp.

JCorp is the holding corporation of QSR Brands Bhd (QSR) via its direct shareholding and indirect shareholding in Kulim (Malaysia) Bhd (Kulim). Kulim in turn, is a holding company of QSR, a major shareholder of KFCH.