7-Eleven Malaysia announces dividend share, cash payout

PETALING JAYA: 7-Eleven Malaysia Holdings Bhd, which today announced cash and shares distribution as dividends, is acquiring a 60% stake in foodstuff supplier Café Decoral Sdn Bhd for RM600,000.

The group is paying out an interim single-tier cash dividend of 2.7 sen per ordinary share; and a share dividend distribution of 18.5 million treasury shares on the basis of one treasury share for every 60 shares held.

7-Eleven told Bursa Malaysia that its wholly owned subsidiary Convenience Shopping (Sabah) Sdn Bhd had on April 18 entered into a share sale agreement with Ng Kin Chen, Ng Lee Chin and Public Yong Tow Foo Sdn Bhd for the proposed acquisition.

Café Decoral presently only supplies ready-to-eat fresh food such as fried fishball, nasi lemak, fried rice, fried mee hoon and sandwiches to about 300 7-Eleven stores in the Klang Valley.

For the financial year ended April 30, 2017, it recorded an audited net profit of RM6,000 with audited net assets of RM187,000.

7-Eleven said the proposed acquisition, which will be financed through internally generated funds, will enable it to venture directly into the production of ready-to-eat fresh food business for the benefit of 7-Eleven stores.

Barring any unforeseen circumstances, the deal is expected to be completed in mid-2018.