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Board rejects rival bid for Malaysia’s QSR

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Palm oil producer Kulim Malaysia has rejected an offer for its stake in fast food company QSR Brands. Dewan Perniagaan Melayu Malaysia (DPMM) offered to pay MYR6.90 per share for Kulim’s holding, slightly higher than a rival bid by CVC Capital Partners and Malaysian state investment arm Johor Corp., which has already received board approval.

Johor is also Kulim's largest shareholder and as such would not support DPMM's offer, the Kulim board said in a filing with Bursa Malaysia. DPMM describes itself as the country's Malay Chamber of Commerce.

QSR controls more than 620 KFC restaurants in Malaysia, Singapore, Brunei, Cambodia and India; 270 Pizza Hut restaurants in Malaysia and Singapore; and more than 40 RasaMas restaurants in Malaysia and Brunei.

CVC and Johor Corp. submitted a proposal on December 14 to privatize QSR and KFC Holdings, paying MYR6.80 per share and MYR4 per share, respectively. It won approval a week later.

The offer represents a 20% premium to QSR's average price in the three months up to December 13 and an 18% premium on KFC's average price over the same period. The QSR bid is also higher than the MYR6.70 offer made by The Carlyle Group a year ago, which was rejected.

Kulim owns 57.5% of QSR, which in turn owns 50.6% of KFC.

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