The Board of BHB is pleased to announce that on 24 March 2017, the BSFS entered into two (2) Cafeteria Operation Agreements (“COAs”) with UKM for the purpose of leasing, renovation and upgrading of the following cafeterias and provision of training and consultancy services for other cafeterias located in UKM based on the profit sharing scheme which shall be implemented and distributed between the parties:-
- Kafetaria Canselori;
- Kafetaria Fakulti Kejuteraan Dan Alam Bina;
- Kafetaria Fakulti Sains Dan Teknologi;
- Lots at Food Court Dewan Tun Abdullah Mohd Salleh; and
- Food outlets at Teres Eko-Niaga Fakulti Ekonomi Dan Pengurusan,
(collectively known as “Designated Cafeterias”)
BSFS and UKM are hereinafter collectively referred to as “the Parties”.
2. INFORMATION ON UKM
UKM, an institution of higher learning established and incorporated under the Universities and University Colleges Act 1971, and having its registered address at 43600 UKM Bangi, Selangor Darul Ehsan.
3. SALIENT TERMS OF THE COAs
The objective of the COAs is to set up terms and conditions of the purpose mentioned above.
3.2 Salient terms
The salient terms of the COAs are as follows:
- UKM hereby grants the Lease of Designated Cafeterias to BSFS and BSFS accepts the lease of Designated Cafeterias subject to the terms as contained in the COAs;
- BSFS shall commence the renovation and upgrading works from the commencement date as defined in the COAs subject to the fulfilment of conditions as agreed between the Parties;
- BSFS shall at its own cost operate, supply and serve meals, beverages and refreshments of the types and standard befitting of a three (3) star premium outlet, and/or sublet portions of the Designated Cafeterias to other operators on such terms and conditions as to be agreed between BSFS and such other operators to supply and serve meals, beverages and refreshments, at the Designated Cafeterias for the use and patronage of the employees and students of UKM and members of the public provided however that any subletting shall be subject always to the Guidelines on Subletting issued by the Working Committee from time to time; and
- BSFS shall pay to UKM profit based on the Profit Sharing Scheme which shall be implemented and distributed accordingly between the Parties based on the amount calculated of the quarterly profit of business at the Designated Cafeterias.
- Each party will bear its own costs and expenses in relation to the COAs, unless mutually decided otherwise by the Parties.
4. FINANCIAL EFFECTS OF THE COAs
The COAs are expected not to have any material effect on the earnings of the BHB Group for the financial year ending 31 December 2017, but will contribute positively to its future earnings.
5. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST
None of the Directors or major shareholders of BHB or any persons connected to them has any interest, direct or indirect, in the COAs.
6. STATEMENT BY DIRECTORS
The Board of Directors of BHB is of the opinion that the signing of the COAs are in the best interest of the Company.
7. APPROVALS OF SHAREHOLDERS AND THE RELEVANT GOVERNMENT AUTHORITIES
The COAs are not subject to the approval of the shareholders of the Company and any relevant government authorities.
This announcement is dated 24 March 2017.