Brahim’s considering disposing of 70% stake in Brahim’s Food Services

The Star

In-flight caterer Brahim’s Holdings Bhd (BHB) is prepared to dispose of 70% of its stake in Brahim’s Food Services to assist the restructuring of the latter’s financial position, said BHB executive chairman Datuk Seri Ibrahim Ahmad in a press conference on Friday.  Read more at https://tinyurl.com/2p824je5  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

00:00 The MAS Act was instituted to actually protect MAS

00:05 against litigation and be wound up and all that

00:07 because we've got so many creditors.

00:10 So an act of parliament was introduced under MAS Act.

00:15 Two years, MAS, Racial and Economic Relations.

00:21 And then they're supposed to talk to all the creditors

00:24 and come to terms on the pricing

00:29 and all the undang-a-long that.

00:30 That time, Racial and Economic was doing very badly.

00:33 You see a lot of losing of money,

00:35 that's why parliament came in to protect them.

00:36 And then that particular year,

00:38 we will be continuing supplying them

00:40 even though the monthly payment,

00:42 they'll pay what, half, one, one third, or three quarters.

00:47 Halloween, there was about 125 million.

00:50 Oh, but finally, as the government said,

00:53 we lost 73 million from our reservoirs.

00:56 And next year, from 59 million profit,

00:59 the previous year, share price 270.

01:02 Next year, we lost 34 million.

01:05 And share price about 260 to 270, plummeted to 90 cents.

01:10 And that was the beginning of our problems.

01:13 From then on, then MAS laws on two planes also impacted us.

01:18 Then the COVID came and one after another, all that.

01:23 So the downfall of private holding

01:27 came right after the installation of the MAS Act.

01:31 So there was an increment of 88 million.

01:35 Our losses that year, actually was about 12 million.

01:38 So we're jumping together,

01:40 the total losses was 100 million.

01:43 And that's how we came into PN70.

01:49 Fall into PN70 was because we were less than

01:52 the 20 or 25% shareholder funds under that.

01:57 So technically, we just found ourselves under PN70.

02:04 There was some time, we wanted to take some time

02:07 to address that, but of course, with COVID,

02:09 all the same, we asked for, what was the first year?

02:13 We asked for extension, and then for further extension,

02:16 and we did not get extension.

02:19 So we lost the public company status.

02:22 Now, it's still a public company,

02:24 but we lost the business status.

02:27 - Currently, 30% is still being owned

02:30 by Malaysia Airlines, MEG.

02:34 70% is owned by Brahims, right?

02:36 So do you have any, I mean,

02:39 Brahims has expressed their intention to sell this 70%.

02:45 So are you now talking to MEG

02:48 or other interested parties to sell this 70%?

02:52 - I know that question.

02:54 Actually, we have been approached by companies

03:01 asking to take over the JV and all that.

03:05 How can you say that we're still in discussion with them?

03:12 No, no decision has been made.

03:14 And the recent newspaper report, I think,

03:19 there was something that the CEO said

03:23 that just one of the things to get out of this mess,

03:28 the catering that caused the delay and all those things,

03:33 they're constantly looking at options, three options.

03:36 One of the options is to buy over,

03:39 to buy over my stake, and then two other options.

03:42 But I'm calling this,

03:46 the rest of this today is that I feel,

03:49 all of us, we feel very sad.

03:51 What's happening at KLA?

03:52 And people, those people who know me,

03:56 I'm involved in flight catering,

03:59 they call me and say, "Hey, what's happening?

04:02 "You're not supplying the food?"

04:04 You know, so it looks as if I am partly to be blamed.

04:12 But, so I'll tell you about that issue.

04:15 Firstly, this is a busy Malaysia year,

04:18 and then after COVID, there's an influx of flights coming in.

04:23 And then during COVID, we were doing about,

04:29 as low as 1,000 meals a day,

04:31 or even below 1,000 meals a day.

04:33 Compared to pre-COVID, we were doing

04:36 about 50,000 meals a day, average.

04:39 When you mentioned that you're discussing, right,

04:41 so is MEG part of the discussion?

04:44 - Yeah, they're the first one we're discussing, yes.

04:47 - And also other foreign caterers, perhaps?

04:51 - No, no, no foreign caterers.

04:54 There's some local interested parties,

04:56 but there's one foreign interested party also.

04:59 But anyway, that's the discussion.

05:02 - When will you expect to conclude this discussion?

05:06 - Sooner or later.

05:09 Some, as you told, I've been talking to them

05:12 for maybe three weeks, over three weeks.

05:15 Whatever, yeah.

05:16 - So, in conclusion, you do want to let go of the 70%?

05:20 - Yeah, I'm willing to let go, but the price must be right.

05:24 Yeah, yeah, of course, of course.

05:25 - What is the price that you're looking at?

05:28 - Well, you see, the first thing is that we must,

05:31 saying that they're constrained to buy over, we discuss.

05:34 So, it's just that, why don't we appoint a value to do this?

05:39 Both of us agree, get the top five, top four company,

05:45 and then we agree and appoint them,

05:47 let them do the valuation.

05:49 So, that's how we appointed Deloitte to do the valuation.

05:53 So, that was, so, you know,

05:58 must consider the pricing.

06:02 I think, it was our, I mean,

06:05 some of you might be aware of how much,

06:08 must initially pay, but not often.

06:11 Yeah, we can't do that.

06:12 - Okay.

06:13 (silence)

06:15 (silence)

06:17 [BLANK_AUDIO]

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