JCorp Has No Plans To Take KFC Holdings Private

KUALA LUMPUR, July 14 (Bernama) -- Johor Corporation (JCorp) has no plans to take its fast-food restaurant KFC Holdings (M) Bhd, private for now, said its chief executive, Tan Sri Muhammad Ali Hashim.

"There are no dicussions on this matter at the moment, but I would not rule out the possibility in future," Muhammad Ali said after a media briefing on the "International Seminar on Awqaf 2008" here Monday.

According to Muhammad Ali, JCorp has plans though to raise the group's stake to 51 percent in KFCH. For now, the company is allowed to buy a two percent stake in KFCH every six months.

"While we have the intention, it does not mean we will buy at any price. It is a business decision and depends on an appropriate price," he explained.

Muhammad Ali also said JCorp was looking forward to having KFCH as its subsidiary either by the year's end or early next year.

JCorp, via its unit QSR Brands Bhd, currently holds about a 48.7 percent stake in KFCH, which owns more than 400 restaurants in Malaysia, Singapore and Brunei.

Meanwhile, Muhammad Ali said JCorp was looking to transform itself into a "Corporate Waqaf" by handing out an endowment in terms of shares to benefit people at large.

Muhammad Ali said Johor Corporation endowed RM200 million worth of shares in its subsidiaries in 2006 and another RM50 million last year. For this year, it is looking to endow another RM50 million.

"Everytime we make a big profit, we will waqaf or make an endowment. But the amount depends on the level of profit as we have to sustain the group first," he added.

JCorp posted a 72 percent higher pre-tax profit of RM600 million for its financial year ended Dec 31, 2007 from RM348 million previously, following a higher contribution from its palm oil business and the better performing healthcare business.

Its revenue also rose 38.1 percent to RM4.774 billion from RM3.457 billion. Meanwhile, Muhammad Ali said JCorp, in cooperation with the Institut Kefahaman Islam Malaysia (IKIM), will organise the International Seminar on Awqaf 2008 under the theme, "The Social and Economic Empowerment of the Ummah".

It will be held from Aug 11-12 at Persada Johor, Johor Bahru. Eight working papers are expected to be presented by local and international scholars to help individuals and organisations understand better the concept and benefits of waqaf.

Among the speakers are Professor Murat Cizakca and Professor Zainal Azam Abdul Rahman, both from the International Centre for Education in Islamic Finance(INCEIF) in Kuala Lumpur.

The seminar, to be officiated by Prime Minister Datuk Seri Abdullah Ahmad Badawi, is expected to attract about 300 participants who will pay RM1,500 each.

-- BERNAMA