Kuala Lumpur – Tamadam Bonded Warehouse Berhad (“Tamadam”), a leading Malaysian logistics and warehousing services provider, today signed a conditional Sale and Purchase Agreement with Brahim’s International Franchises Sdn Bhd (“BIF”) to acquire a 51% equity interest in Brahim’s-LSG Sky Chefs Holdings Sdn Bhd (“BLH”) at an indicative purchase consideration of RM130.0 million, to be satisfied by the issuance of new Tamadam shares.

Upon completion of the acquisition of BLH, the vendor, namely BIF, is expected to hold approximately 73% of Tamadam. The shareholders of BIF are Datuk Ibrahim bin Haji Ahmad and Tan Sri Dato’ Mohd Ibrahim bin Mohd Zain.

Tamadam also entered into another conditional Sale and Purchase Agreement with Dewina Holdings Sdn Bhd (“DHSB”) to acquire 51% equity interest in Dewina Host Sdn Bhd (“DHost”) consisting of 127,500 shares in DHost at a purchase consideration of RM6.12 million also to be satisfied by the issuance of new Tamadam shares.

Upon completion of the acquisition of DHost, the vendor, namely DHSB is expected to hold approximately 3% of Tamadam. The shareholder of DHSB is Datuk Ibrahim bin Haji Ahmad.

“The injection of these two companies into the Tamadam Group is expected to add value to our bottom line, whilst satisfying our long term goal of being a more diversified group. These acquisitions are expected to contribute positively to the future earnings of the Tamadam Group upon completion.” said Cheam Heng Cheang, Managing Director of Tamadam.

The balance 49% of BLH is owned by LSG Asia GmbH (“LSG Asia“) 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. LSGB has entered into a technical assistance agreement with LSG Asia on 25 September 2003 and basically entails the provision of various technical assistance by LSG Asia for the operations of LSGB for a period of twenty-five (25) years until 2028.

BLH owns 70% of LSG Sky Chefs-Brahim’s Sdn Bhd (“LSGB“). The balance 30% of LSGB is owned by Malaysian Airline System Berhad (“MAS“). LSGB was formerly known as MAS Catering Sdn Bhd. LSGB has a catering agreement with MAS which was entered into on 25 September 2003 giving LSGB the exclusive right to supply and provide in-flight catering and cabin handling services to MAS at both the KLIA and Penang airport for a period of twenty-five (25) years until 2028.

LSGB is a global airline catering company serving more than thirty (30) 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.

LSGB 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.

DHost is involved in the food catering business and operates a total of eleven (11) restaurants and cafes located at the KLIA and the LCCT including Burger King, Asian Kitchen, Cafe Marche and Suria Cafe. The balance 49% of DHost is owned by Host International, Inc. (“Host International“), a wholly owned subsidiary of Host Marriott Services Corporation, with its headquarters in Bethesda, Maryland, United States of America.  Host International manages restaurants, gift shops and related facilities at seventy-one airports and nine off-airport locations, on tollroads (including ninety-two travel plazas) and shopping malls.

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.