KUALA LUMPUR (Oct 30): Berjaya Corp Bhd (BCorp) has raised its stake in Berjaya Food Bhd (BFood), whose share price has fallen by a third year to date, to 57.43% from 55.31% after buying 37.25 million shares.

BCorp paid RM26.59 million in total, or 71.4 sen per share, for the block of shares purchased. BFood, which operates the Starbucks coffee chain in Malaysia, closed at 68.5 sen on Monday, giving it a market capitalisation of RM1.33 billion. 

In a filing with Bursa Malaysia, BCorp said the group had on Sept 26 and Oct 27 bought 37.25 million shares, representing 2.12% stake in BFood via a direct business transaction and on the open market. 

Following the latest transaction, BCorp now holds a total of about 1.008 billion shares, or a 57.43% stake, in BFood. 

The acquisitions, BCorp said, were funded from borrowings and there is no liability to be assumed arising from the share purchase. 

The share acquisitions are not expected to have any material effect on BCorp’s net assets, earnings and gearing for the current financial year ending June 30, 2024. 

BFood, which operates the Starbucks, Kenny Rogers Roasters and Jollibean Foods cafe and restaurant chains in Malaysia, saw its net profit fall 16% to RM103.41 million for the financial year ended June 30, 2023 (FY2023) on higher operating costs resulting from inflationary pressures and the unfavourable foreign exchange rate against the US dollar. 

Its annual revenue, however, grew by 12% to RM1.12 billion in FY2023 from RM997.76 million a year earlier due to the aggressive marketing campaigns and effective promotion strategies, as well as the additional stores operating in Malaysia.

BCorp share price dropped one sen at 29 sen, valuing it at RM1.73 billion.