KUALA LUMPUR (Dec 14): Government-linked private equity fund management company Ekuiti Nasional Bhd (Ekuinas) has teamed up with its partner Datuk Abdul Rahim Mohd Zin to divest its 90% equity interest in San Francisco Coffee (SFC) for RM24 million.
Ekuinas said this is part of the ongoing portfolio restructuring exercise of its food and beverage (F&B) division. SFC operates 28 outlets in the country.
“This latest divestment is part of our exit and crystallisation of asset strategy as a private equity firm, after more than six years of operation,” it said in a statement today.
Ekuinas explained that together with Abdul Rahim, it has entered into a conditional agreement with a consortium comprising Platinum Appreciation Sdn Bhd (PASB) and Brothers Coffee Ventures Sdn Bhd (BCV) to divest 100% stake in Lyndarahim Ventures Sdn Bhd, which is the holding company of SFC.
PASB is wholly-owned by Singapore-listed Envictus International Holdings Ltd, it said, adding that the completion of this exercise is subject to conditions precedent, including Envictus’ shareholders’ approval.
The exercise is expected to be completed by the end of first quarter 2016.
“The consortium was selected, after it submitted the best offer under a sale process that attracted the interest of a number of local and international parties.
“The divestment is estimated to substantially cover the original cost of investment, and represents a minimal negative internal rate of return (IRR) of 5%,” Ekuinas said.
Its chief executive officer Datuk Abdul Rahman Ahmad said the divestment enabled it to fully focus on its core casual dining and dessert franchise segments, covering brands such as Tony Roma’s, Manhattan Fish Market, New York Steak Shack and Coolblog.
“Together, these brands generate [a] combined revenue of approximately RM300 million, operating through more than 400 outlets across several regions,” he added.
To date, Ekuinas which was formed on Sept 1, 2009, has undertaken five partial and total exits, with total realisation proceeds of more than RM1 billion.
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