Type Announcement
Subject MEMORANDUM OF UNDERSTANDING
Description BRAHIM’S HOLDINGS BERHAD (“BRAHIM’S” OR “THE COMPANY”) MEMORANDUM OF UNDERSTANDING ENTERED BETWEEN BRAHIM’S HOLDINGS BERHAD AND NIPPON EXPRESS (MALAYSIA) SDN BHD (NEM)
1. INTRODUCTION
The Board of Directors of the Company wishes to announce that the Company had on 15th June 2015 entered into a memorandum of understanding (“MOU”) with NEM for the purpose of entering into a collaboration of BRAHIM’S tapping into the international network of Nippon Express Group.
2. INFORMATION ON NEM
NEM is part of the Nippon Express Group, an international freight forwarding and global logistics service provider. NEM have taken steps to develop dedicated transportation services that complies with the requirements of the MS2400-1: 2010 (Halal Logistics).
3. SALIENT TERMS OF THE MOU
(a) Purpose of the MOU
NEM and BRAHIM’S are desirous to collaborate and conduct mutual co-operation with each other in ensuring the integrity and reliability of its supply chain benchmarking for world class Halal Logistics services.
The parties have entered into the MOU to set out the broad framework to facilitate negotiations to formalise ‘Definitive Agreements’.
(b) The salient terms of the MOU, which include amongst others, are as follows:
i) Nippon Express is a global logistics company operating all over the world and expanding rapidly including this South Asia and Oceania region.
ii) The Corporate Philosophy of the Nippon Express Group is to be a driving force for social development and its challenge is to create new ideas and value that expand the field of logistics.
iii) NEM have embraced this mission and have taken steps to develop dedicated transportation services that complies with the requirements of the MS2400-1: 2010 (Halal Logistics).
iv) BRAHIM’S being a highly reputable Halal food producer and retailer with plans to develop its businesses internationally would require the services of an international logistics service provider to ensure the integrity and reliability of its supply chain.
v) NEM would be able to manage these requirements and become a one stop logistics solutions provider to Brahim’s in this regard.
vi) BRAHIM’S would benefit from the international network of the Nippon Express Group in various areas such as cost efficiencies, reliability and integrity of its supply chain and other core competencies associated with a highly efficient logistics system.
4. RATIONALE
The objective of the MOU is to draw on the Parties core competencies to enable BRAHIM’S to benefit from NEM’s global supply chain for cost efficiencies, reliability and integrity of its supply chain.
5. EFFECT OF THE MOU
The MOU is not expected to immediately have material effects on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholding of BRAHIM’S for the financial year ending 31 December 2015.
6. INTEREST OF MAJOR SHAREHOLDERS AND DIRECTORS
None of the directors and/or major shareholders of BRAHIM’S and/or persons connected to them have any interest, direct or indirect, in the MOU.
7. DIRECTOR’S STATEMENT
The Board of Directors of BRAHIM’S, having considered the rationale and terms of the MOU, is of the opinion that the MOU is in the best interest of the Company.
8. DOCUMENTS FOR INSPECTION
A copy of the MOU is available for inspection at the registered office of the Company located at 10thFloor, Menara Hap Seng, No. 1 & 3, Jalan P. Ramlee, 50250 Kuala Lumpur during normal business hours on Mondays to Fridays (except Saturdays, Sundays and Public Holidays) for a period of three (3) months from the date of this announcement.
This announcement is dated 15 June 2015.