26 November 2014 – The Malaysian Insider
Malaysian in-flight caterer Brahim’s Holdings Bhd and Quantum Angel Sdn Bhd today announced a RM95 million deal to buy the Burger King franchise in Malaysia and Singapore from Ekuinas Nasional Bhd.
Brahim’s unit Brahim’s Trading Sdn Bhd has 80% of the deal with the remainder undertaken by Quantum Angel, a private equity firm managed by Zulu Capital Sdn Bhd which is led by Datuk Ahmad Zaki Zahid who used to run another fast food franchise, Kentucky Fried Chicken Malaysia.
Both are acquiring the 100% equity interest in Rancak Selera Sdn Bhd which is owned by Ekuinas, the government-linked private equity fund management company.
Rancak Selera is the holding company for both Cosmo Restaurants Sdn Bhd and Burger King Singapore Pte Ltd, which hold the franchise rights in Malaysia and Singapore.
In a statement today, Brahim’s said it will seek a strategic co-investor to take up 30-40% new equity stake after the acquisition is completed.
“We are pleased to be investing in the Burger King franchise in Malaysia and Singapore. It possesses a strong brand and the trend of increasing fast food consumption by Malaysian and Singaporean consumers provides us with significant growth potential,” Brahim’s
executive chairman Datuk Seri Ibrahim Ahmad said in a statement.
“Moreover, our association with Burger King for the past 15 years through our KLIA Burger King outlets, coupled with the expertise of Quantum Angel which is led by Datuk Ahmad Zaki Zahid who has extensive experience in the QSR sector, we are confident the business will grow.”
Ahmad Zaki led the RM5.2 billion privatisation of QSR Brands Berhad and KFC Holdings Berhad by a consortium comprising Johor Corporation Berhad, the Employees Provident Fund and CVC Capital Partners Ltd between 2011 and 2013.
Ahmad Zaki was also formerly an aide of Malaysia’s fifth prime minister Tun Abdullah Ahmad Badawi, whose is the brother of Brahim’s Ibrahim.
Prior to the deal, Ekuinas had a 74.1% stake in Cosmo Restaurants wholly owned the franchise for Singapore under Burger King Singapore.
In September 2011, Ekuinas spent RM68.2 million on the Burger King franchise, when it injected capital into Cosmo Restaurants and took over the minority shareholders’ stake in Cosmo Restaurants.
Subsequently in December last year, Ekuinas injected an additional capital of RM48.8 million into Integrated Food Group Sdn Bhd, to buy the remaining 25.9% stake.
Collectively, the government-linked private equity fund has spent some RM117 million on the Burger King franchise. – November 26, 2014.