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.