7-Eleven Malaysia’s Wholly-Owned Subsidiary, Convenience Shopping (Sabah) Sdn Bhd (CSSSB), is set to embark on a significant move as it plans to sell its entire 75% stake in Caring Pharmacy to BIG Pharmacy Healthcare. According to a statement released by 7-Eleven, CSSSB recently received a binding term sheet from BIG Pharmacy, valuing the acquisition of Caring Pharmacy at approximately RM637.5 million ($139.4 million).
This strategic decision, known as the ‘Proposed Disposal,’ comes as a means for the Company to unlock and capitalise on its long-standing investment in Caring Pharmacy. The transaction is expected to yield a one-off gain, which is anticipated to significantly enhance the net assets of the Company and its subsidiaries, as stated by 7-Eleven.
The comprehensive transaction encompasses all of Caring Pharmacy’s subsidiaries and associated firms, which operate under the renowned CARING, Georgetown, and Wellings brands. Additionally, the deal includes the rights to acquire all intellectual property owned and utilised by Caring Group and its Indonesian businesses, except the business in Indonesia that are operated by PT Era Caring Indonesia, a 50.1%-owned indirect owned venture of Caring and PT Era Farma Indonesia where it holds a 49.9% stake.
7-Eleven Malaysia views this disposal as an opportunity to unlock and maximise the value of its investment in Caring Pharmacy, providing a platform for future growth prospects.
Post-disposal, the company plans to redirect resources towards expanding its convenience store business. 7-Eleven Malaysia aims to open 50 new 7-Cafe stores and refurbish over 50 existing stores, both within and outside the Klang Valley, according to the research house.
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