Berjaya Food disposes of interest in Kenny Rogers Indonesia

PETALING JAYA: Berjaya Food Bhd (BFood) subsidiary Berjaya Food International Sdn Bhd (BFI) is selling its entire stake in Kenny Rogers Roasters Indonesia operations, PT Boga Lestari Sentosa, for 9.60 billion rupiah (RM3.1 million).
The disposal is an opportunity for the BFood Group to divest its non-profitable foreign investment and recover a portion of the inter-company debt.
In a filing with Bursa Malaysia last Friday, the company said it entered into an agreement with two individuals Rudy Wiguna and Komelia Ersan for the disposal of its interest at 1,000 rupiah (32 sen) and the repayment of a 9.60 billion rupiah PT Boga debt to BFI.
The nominal consideration for the disposal was arrived at on a willing-seller willing-buyer basis after taking into consideration the past yearly losses and the shareholders’ deficit of PT Boga of 114.65 billion rupiah as at Aug 31, 2017. The original cost of investment in PT Boga was RM33.98 million, which has been fully impaired to date.
PT Boga was incorporated in Indonesia on June 9, 2005 and currently has an issued share capital of 127.61 billion rupiah comprising about 13.83 million PT Boga shares.
PT Boga is involved in the developing and operating of Kenny Rogers Roasters restaurants in Indonesia since 2011 and currently has 10 restaurants in Jakarta, Indonesia. The disposal results in a loss of about RM13.27 million or 3.53 sen per share for BFood.