7-Eleven Malaysia to acquire 60% of food supplier Café Decoral

Photo: Cafe Decoral's Facebook page

Convenience Shopping Sdn Bhd, a fully owned subsidiary of 7-Eleven Malaysia Holdings Berhad (SEMH), has agreed to acquire a 60 per cent stake in Café Decoral Sdn Bhd, a ready-to-eat food supplier, for RM600,000.

The deal in which Convenience Shopping will subscribe to 123,004 ordinary shares of Café Decoral should be completed by mid 2018, according to a Bursa Malaysia filing on April 18.

“The proposed acquisition will enable SEMH to venture directly into the production of “ready to eat” fresh food business for the benefit of 7-Eleven stores,” the company noted in the filing.

A share sale agreement was signed on April 18 with Ng Kin Chen and Ng Lee Chin, the founders of Café Decoral, and Public Yong Tow Foo Sdn Bhd, a manufacturer and dealer of food products.

Following the acquisition, Ng Lee Chin and Ng Kin Chen will hold 27.56 per cent and 10 per cent stakes respectively, down from 48.78 per cent and 29.27 per cent earlier. Moreover, Public Yong Tow Foo’s ownership of 19.51 percent will be fully liquidated while another shareholder, Ng Ming Kiat, will continue to own a 2.44 per cent stake.

Pursuant to the acquisition, a three-storey shop house of Café Decoral in Selangor will be acquired for RM250,000. The value of the property is marked at RM108,543 as of the end of this April.

Started in 1984, Café Decoral currently supplies fast-food such as fried fish balls, fried rice, fried mee hoon and sandwiches to about 300 7-Eleven stores in the Klang Valley in Malaysia.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.