25 February 2015 – The Star
KUALA LUMPUR: Brahim’s Holdings Bhd’s shareholders have rejected the company’s plan to buy the loss-making fast-food Burger King franchise for RM95mil.
The company said on Wednesday the proposed acquisition was not passed by the shareholders at the EGM by a show of hands.
Brahim’s said since the resolution was for purchase was rejected, the proposed joint venture was withdrawn with the consensus of the shareholders.
Earlier, Brahim’s told shareholders that it would take about two years to turn around Burger King and it would be beneficial in the long-term.
The corporate exercise involved the proposed purchase of 100% equity interest in Rancak Selera Sdn Bhd by its unit Brahim’s Trading Sdn Bhd, together with Quantum Angel Sdn Bhd for RM95mil cash.
If the purchase was approved, Brahim’s Trading and Quantum Angel to incorporate a special purpose vehicles pursuant to the proposed acquisition.
A minority shareholder told StarBiz that because Burger King was loss-making and most of its outlets had closed down, this was the reason why the proposal was rejected at the EGM.