KUALA LUMPUR: KUB Malaysia Bhd is open to selling its A&W Malaysia fast food business if the price is right.
KUB president and managing director Datuk Abdul Rahim Mohd Zin said the group has received several offers for the fast food franchise.
“We have obtained several proposals for our A&W business,” he told reporters after the company's shareholders' meeting today.
“We are presently evaluating – it depends on the right price. If the right price comes, we are open to it,” he said.
“My rationale is capital rationing. If the right opportunity presents itself we will make a call on whether or not we can continue with this business or to invest more in the other sectors that provide better, quicker or larger financial returns for us,” he added.
Abdul Rahim, however, reaffirmed KUB’s commitment to a 3-year development agreement ending June 2019 with A&W master franchisor A Great American Brand LLC.
“We’ll comply with the development agreement, we have to preserve the value of the asset by continuing to invest in new stores in compliance to the (franchise development) agreement,” said Abdul Rahim.
The group, he added, has allocated RM25 million to continue with expansion plans under the agreement – comprising eight new stores next year and nine more in 2019. KUB currently has 35 A&W outlets throughout Malaysia.
When asked on the redevelopment of the iconic A&W restaurant in Lorong Sultan, Petaling Jaya, Abdul Rahim said Petaling Jaya City Council (MBPJ) is set to give its approval by July 2017.
“We’ll be building a tower of office and retail space. The gross development value of that strategic land parcel amounts to RM245 million,” he said.