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1. INTRODUCTION
The Board of Directors of the Company wishes to announce that the Company’s 51%-owned subsidiary, BSFS, had on 12 April 2016 entered into a memorandum of understanding (“MOU”) with 7-ELEVEN for the purpose of collaboration and cooperation in food chain supply.
2. SALIENT TERMS OF THE MOU
The salient terms of the MOU are as follows:
(a) BSFS shall plan, develop and create menu specifications and products to be marketed through 7-ELEVEN’s nation-wide chain of convenience stores;
(b) 7-ELEVEN to provide a centralised distribution centre for BSFS to deliver all products manufactured by BSFS and to arrange for the products delivery;
(c) both parties shall take responsibility to make sure that both parties’ mutual interest are protected and remains exclusive during the term of the MOU;
(d) both parties shall also continue to explore any other opportunity in other areas of business that may develop into continuous business relation or cooperation;
(e) a joint working group is established to facilitate the cooperation by overseeing the smooth implementation of the MOU; and
(f) the cost of the cooperative activities under the MOU shall be funded on terms to be mutually agreed upon by the respective parties on a case by case basis.
3. EFFECT OF THE MOU
The MOU is not expected to have immediate material effects on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholding of the Company for the financial year ending 31 December 2016.
4. INTEREST OF MAJOR SHAREHOLDERS AND DIRECTORS
None of the directors and/or major shareholders of the Company and/or persons connected to them have any interest, direct or indirect, in the MOU.
5. DIRECTOR’S STATEMENT
The Board of Directors of the Company, having considered the terms of the MOU, is of the opinion that the MOU is in the best interest of the Company.
This announcement is dated 15 April 2016.
* Brahim’s Airline Catering Sdn. Bhd. is changing its name to Brahim’s SATS Food Services Sdn. Bhd. |
