Jcorp/KFC/QSR

Jcorp/KFC/QSR: Sources say Felda is said to be among those considering to bid for KFC Holdings Bhd (KFCH) and QSR Brands Bhd should Johor Corporation (JCorp) make available its stakes. However, Felda has yet to table the offer and planned to discuss with JCorp regarding the proposal. Felda chairman, Tan Sri Mohd Isa Abd Samad, earlier 2011 expressed interest in buying these two companies as Felda has the experience and strength to manage big entities. However, while Felda may be interested, the chance of it happening is slim as JCorp is unlikely to be willing to part with cash cow. Going forward, Lembaga Tabung Haji (LTH), the largest single minority shareholder of KFC Holdings (M) Bhd with a 23% stake, is likely to hold the key to the proposed privatisation deal of the fried chicken retailer.

JCorp/Kulim/QSR Dec 2011

JCorp/Kulim/QSR: Doubts are the deadline for the joint takeover of QSR Brands Bhd and KFC by JCorp and CVC Capital Partners Asia will be met. If they cannot get the board to accept the offer and fulfill all of its conditions in one week (deadline Dec 21,2011), they stand to lose the deal. Also interested parties from the previous two bids may decide t o rejoin the bid with possibly higher bids. Tan Sri Halim and The Carlyle Group bid for QSR later 2010, offering rm5.60 and then upping the bid to rm6.70 per share. Both offers were rejected by both Kulim and QSR management. It is just 10 sen separates Carlyle’s and JCorp’s latest offer.

The acquirers need to secure the approval of at least 75% of minority shareholders in order for the deal to materialize. It is believed that the deal is likely to get the nod from KFC’s franchisor, YUM Brands, Inc given that JCorp will still be driving the operations and the offer is fair according to market observers.