Qsr May Consider Buying A&w Franchise

QSR Brands Bhd, operator of KFC and Pizza Hut fast-food chains, may consider buying the local A&W franchise if there is a good offer.

(Wednesday, March 21, 2007) - QSR managing director Jamaludin Md Ali said there should be synergy among the three franchises since they are all under the same principal - Yum! Brands Inc of the US.

"We will treat it as a business opportunity," Jamaludin said when asked whether QSR would be interested in taking over the A&W business from KUB Malaysia Bhd.

"So far, we haven't received (any offer). If there is any, we will study the prospect and viability of not just A&W, but also other F&B (food & beverage) businesses," he added.

KUB Malaysia recently announced plans to sell off some businesses by the year-end and said that there were bidders for non-core operations such as the plantation, manufacturing and F&B.

Jamaludin was speaking to reporters after QSR and Telekom Malaysia Bhd (TM) signed a pact to offer Wi-Fi wireless Internet broadband service at more than 100 Pizza Hut outlets in Kuala Lumpur yesterday.

On QSR's mandatory general offer (MGO) for shares in KFC Holdings Bhd, Jamaludin said the offer document would be sent to KFC shareholders once approval on the MGO is obtained at QSR's extraordinary general meeting on March 27.

The offer would last for 21 days, he said, adding that completion of the MGO is expected before the end of April.

QSR now owns 42.9 per cent of KFC Holdings and has said it would buy the remaining 57.1 per cent stake it does not own for RM4.94 a share.

Jamaludin said there would be no revision to the offer price.

Some analysts, however, expect QSR to change its offer price, given that KFC shares closed at RM5.80 on Monday.

Meanwhile, Jamaludin said the pact with TM is expected to bolster its Pizza Hut sales, but did not give any figures.

TM general manager for integrated marketing (Malaysia Business) Zainab Hashim said with tmnet hotspot access at 113 Pizza Hut restaurants, the chain has the widest Wi-Fi service among TM's broadband client portfolio.

"We will be installing tmnet hotspot access at another 15 Pizza Hut restaurants in Sabah and Sarawak by the end of this month," she added.

Zainab also said that TM's broadband subscribers is expected to hit the one-million mark by the year-end from the current 915,000, which included 150,000 pre-paid subscribers.

"We are heeding the Government's call to encourage more broadband users," she said.

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