KUALA LUMPUR (Bernama) — Pan Malaysia Corporation Bhd (PMC) has proposed to acquire a 51% share in A&W (Malaysia) Sdn Bhd from Inter Mark Resources Sdn Bhd for RM21.04 million.
In a filing with Bursa Malaysia today, PMC said the acquisition would be satisfied via a combination of cash amounting to RM11.57 million and a transfer of 63.11 million PMC shares.
“The proposed A&W acquisition provides an opportunity for the PMC group to expand and diversify its revenue and earnings base from the mainly chocolate and confectionery business into the rapidly growing quick-service restaurant (QSR) business,” the group said.
PMC said the foodservice sector’s growth is expected to recover with an increasing number of transactions as the economy recovers from the COVID-19 pandemic.
Increasing takeaways and the rising demand for dining out would drive the growth in Malaysia in the coming years, it said.
“Given the nostalgic brand memories with the baby boomers and the brand recognition amongst the millennials, product differentiation through proprietary drinks (root beer) and food (coney, curly fries) and an increased focus on convenience, cost, choice, consistency and cleanliness; it is expected that A&W Malaysia will capture an increasing share of the expanding QSR market in Malaysia,” it said.
Source: The Star