MEMORANDUM OF UNDERSTANDING BRAHIM’S HOLDINGS BERHAD (“the Company” or “BHB”) MEMORANDUM OF UNDERSTANDING BETWEEN BHB AND LABUAN HALAL HUB SDN BHD (“LHH”)

 

1. INTRODUCTION

 

The Board of Directors of BHB is pleased to announce that BHB, had on 16 January 2014, entered into a Memorandum of Understanding (“MOU”) with Labuan Halal Hub Sdn Bhd (“LHH”) to produce and supply Halal meals to offshore oil platforms and vessels, and distributing Brahim’s ready-to-eat meals and cooking sauces to East Malaysia and Brunei.  BHB will also collaborate with LHH to provide technical support in the management of Halal process and accreditation to new overseas markets developed by LHH.

 

 

 

2. INFORMATION ON LHH

 

2.1 LHH

 

LHH was established by Perbadanan Labuan to invest and expand in the Halal Industry in line with the growing demand for Halal food and services in Asia.  LHH is a company carrying on the business, inter alia, as a developer and operator of the Labuan Halal Hub, promotion of the certification of “Halal” on halal products and services by competent   authorities and cooperation or collaboration with any entities and ventures on the tracing, tracking and verification system of Halal products and services through electronic means or otherwise and other related services within the concept of Halal business.

 

 

3. SALIENT TERMS OF THE MOU

 

The salient terms of the MOU, which include amongst others, are as follows:

 

(a)  Halal Meals production for supply to offshore oil platforms and vessels in and around Labuan and including companies operating from the Labuan Asian Supply Base premises.

 

(b)  Working jointly with LHH to supply a range of ready-to-eat-meals and other varieties of Brahim’s Sauces and meal helpers and marketing and distributing in East Malaysia including Brunei.

 

(c)  Providing technical support and working jointly with LHH in the management of Halal processes and accreditation for China’s domestic and export markets.

 

(d)  Special partner to LHH as technical support provider in LHH halal development projects within and beyond Malaysia.

 

(e)  Working jointly with LHH on the operations of the Halal Hub Warehouse.

 

The MOU shall remain in effect from 1 January 2014 to 31 December 2014 unless earlier terminated in accordance with the provision of the MOU.

 

 

 

 

4. RATIONALE

 

The objective of the MOU is to form a strategic business alliance and business collaboration to explore ways and draw on the inherent synergies of the respective parties, i.e. BHB and LHH to gain new market share in Halal food catering for offshore vessels and platforms and to generate value-added ventures for Halal Hub operations in the Asia Pacific region.

 

 

 

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 BHB for the financial year ending 31 December 2014.

 

 

 

6. INTEREST OF MAJOR SHAREHOLDERS AND DIRECTORS

 

Save for Datuk Ibrahim bin Haji Ahmad, who is a major shareholder and the Executive Director of BHB, as well as a major shareholder and Director of Dewina Food Industries Sdn. Bhd. which produces the Brahim’s brand of halal sauces and ready-to-eat rice meals, none of the other directors and/or major shareholders of BHB and/or persons connected to them have any interest, direct or indirect, in the MOU.

 

 

 

7. DIRECTOR’S STATEMENT

 

The Board of Directors of BHB, 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 10th Floor, 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 16 January 2014.