Malaysia Dealbook: Qualitas, Brahim’s, Integrax, Plenitude

Brahim's Group website

The last couple days has seen Malaysia based companies – including Integrax, in-flight F&B company Brahim’s, real estate majors Nomad group and Plentitude – engage in deals and transactions related to mergers and takeovers. Meanwhile healthcare major Qualitas has finally chosen to raise funds for expansion via an initial public offer, expected during the middle of this year.

Qualitas Healthcare pursues IPO

 

Healthcare group Qualitas Healthcare Corp has decided to pursue an IPO next month as an optimum route for the future growth of the company, the Edge Financial Daily reported last week, citing a source.

Earlier, it was also reported that the company was mulling the decision about raising funds through a either a public listing or by sell its business in a trade sale to other healthcare groups.

Qualitas announced in December last year that it planned to list on Bursa Malaysia via an IPO that the bankers expect, will raise upto $200 million.

The source noted, however, that Qualitas was valued at close to MYR1 billion ($274 million), through the IPO.

“The group plans to raise sizeable funds for the future growth of the company as its potential cornerstone investors understand its position as a market leader in providing primary care services in the country,” the source said.

Related story: Qualitas Healthcare to decide between IPO & trade sale, this week

Integrax board proposes rejection of TNB’s revised offer

 

Integrax Bhd’s board has recommended its shareholders reject the revised offer by national power company Tenaga Nasional Bhd (TNB) at MYR3.25 a share.

It said the updated underlying value per Integrax share of MYR3.60 to MYR3.66 per share remains at a material premium of 10.8 per cent to 12.6 per cent to the revised offer price.

“Major shareholder Amin Halim Rasip has confirmed that he would reject the revised offer,” the port terminal operator said in the supplemental letter on the revised conditional takeover by TNB to Bursa Malaysia on Wednesday.

Integrax said it had considered the details of the revised offer as well as the evaluation and recommendation by M&A Securities Sdn Bhd, and deemed the revised offer ‘not fair’ vis-à-vis the value per Integrax share ranging from MYR3.60 to MYR3.66.

However, the board said the revised offer was ‘reasonable’ having considered the historical trading activity of Integrax shares and the absence of a competing or alternative offer.

In its earlier offer, TNB was looking to acquire the remaining 78 per cent that it does not own at an offer price of MYR2.75 a share. On February 25, the national power supplier revised its offer.

Related story: Malaysia: Tenaga to buy Integrax for $80.56m

 

Brahim’s aborts Burger King acquisition, eyes Chicken Rice Shop

 

Brahim’s Holdings Bhd has aborted its plan to acquire the Burger King franchise in Malaysia and Singapore last week, as more than 90 per cent of its shareholders are against it.

The in-flight meals provider said it will continue to look for acquisitions in the food and beverages (F&B) industry and in a related development this week, Brahim’s suspended its shares trading on Friday until Monday.

The suspension was on the expectation of a material announcement, relating to “talks with a local restaurant chain”.

Local media, The Edge Financial Daily quoted sources saying that the inflight caterer was in discussion with TCRS Restaurants Sdn Bhd, which runs The Chicken Rice Shop, Sweet Chat and Dubu-Dubu in Malaysia. The F&B group is also the co-owner of the Pancake House International.

Brahim’s hunt for an acquisition indicates its intention to alleviate reliance on its catering business. The group recently agreed to unattractive interim terms with its biggest customer, Malaysia Airlines.

Executive Chairman Datuk Seri Ibrahim Ahmad Badawi said last week that among the reasons it dropped the deal on Burger King was that the fast food chain is a loss-making entity.

Brahim’s held an extraordinary general meeting to seek shareholders’ approval to acquire a 100 per cent equity interest in Rancak Selera Sdn Bhd, a unit of sovereign private equity arm, Ekuinas, for MYR95 million.

It was reported that for the nine-month financial period ended Sept 30, 2014, Rancak Selera registered a loss of MYR50.4 million compared with an income of MYR29.8 million in the previous corresponding period.

Rancak Selera is also the holding company for Cosmo Restaurants Sdn Bhd and Burger King Singapore Pte Ltd.

The acquisition would have given Brahim’s control of the Burger King outlets, and an opportunity to integrate its existing portfolio.

 

Plenitude offers takeover of Nomad Group

 

Property developer Plenitude Bhd has offered to take over The Nomad Group, which owns a string of properties in Kuala Lumpur and Penang.

Plenitude has proposed to take over Nomad for MYR1.25 per share or MYR278.84mil via the issuance of 111.55 million new Plenitude shares of RM2.50 each.

In a filing with Bursa Malaysia, the property developer said it will offer Nomad shareholders one Plenitude share worth MYR2.50 for two Nomad shares.

Plenitude’s principal activities are investment holding and provision of management services, and is through its wholly-owned subsidiaries involved in property development, property investment, hotel operations and provision of management services for the hotel and travel industry.

The Nomad Group’s hotel segment owns the Novotel Kuala Lumpur City Centre, The Nomad SuCasa, GLOW Penang and The Nomad Services Residences Bangsar.

Plenitude said since its hotels were currently in Penang, the acquisition would enable it to tap into the hotel sector in Kuala Lumpur by virtue of Nomad’s properties in the city.

Also read: 

Malaysia realty roundup: CapitaMalls, Hua Yang

Malaysia realty roundup: Mulpha, OCR, WCT, Ivory

Malaysia’s Axis REIT aims for $830m AUM

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.

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.