Kuala Lumpur – Tamadam Bonded Warehouse Berhad (“Tamadam”), a leading Malaysian logistics and warehousing services provider, today announced that it has entered into a memorandum of understanding with the vendors of Brahim’s-LSG Sky Chefs Holdings Sdn Bhd (“BLH”) and Dewina Hosts Sdn Bhd (“DH”) on the proposed acquisition of 51% of BLH and 51% of DH.
The proposed acquisition of 51% of BHL and 51% of DH will be at an indicative purchase consideration of RM130 million and RM6.12 million respectively, to be satisfied entirely with Tamadam shares. The proposed acquisition will be formalized via the execution of a share sale agreement upon the finalisation of all terms of the proposed acquisition.
“In coming up with this proposed acquisition, we see value in the businesses of the assets to be acquired and I know our shareholders will appreciate the expansion in earnings from the current business model.” Cheam Heng Cheang, Managing Director of Tamadam.
He goes on to say, “We see great growth potential in the food service and catering industries, and through BLH and DH and their involvement in these industries, we will be able to enhance value for Tamadam’s shareholders.”
The balance 49% of BLH is owned by LSG Asia GmbH which is a wholly owned subsidiary of LSG Lufthansa Service Holding AG, the world’s largest provider of catering and in-flight solutions which operates under the “LSG Sky Chefs” brand. This acquisition is expected to contribute positively to the future earnings of the Tamadam Group upon completion.
BLH owns 70% of LSG Sky Chefs-Brahim’s Sdn Bhd (“LSGB”). The balance 30% of LSBG is owned by Malaysian Airline System Berhad (“MAS”). LSGB was formerly known as MAS Catering Sdn Bhd.
LSGB is a global airline catering company serving 29 international airlines. Operating 24 hours daily with an output of 40,000 meals per day, the company is the premier provider of in-flight catering and cabin handling services at both Kuala Lumpur International Airport and Penang Airport.
BLH prides itself on the preparation of 100% guaranteed halal meals and a fully integrated food logistics supply chain which includes coldrooms, warehouses and distribution support. Some of their major clients include MAS, Japan Airlines, Cathay Pacific, Korean Air, Air Asia and Thai Airways.
DH is involved in the food catering business and operates eleven restaurants and cafes in KLIA and the LCCT including Burger King, Asian Kitchen, Cafe Marche and Suria Cafe.
Tamadam, a public listed company on the Second Board of Bursa Malaysia, is an investment holding company with subsidiaries involved in the provision of warehousing and logistics solutions. Some of the services offered include warehousing (bonded and non-bonded), cold storage, trucking, distribution, customs forwarding, freight forwarding and container storage and repair.