Berjaya Food sells Kenny Rogers Roasters business in Indonesia

Berjaya Food (B-Food)’s subsidiary Berjaya Food International (BFI) has disposed its 99.9% stake in Boga Lestari Sentosa, the operator of Kenny Rogers Roasters restaurants in Indonesia.This is for a nominal sum of IDR1,000, according to a filing on Bursa Malaysia. This also amounts to 13.82 million ordinary shares, settling a portion of inter-company debt owing by Boga Lestari Sentosa to BFI, which amounts of IDR9.6 billion, which is equivalent to around RM3.1million. The shares were disposed to two individuals, Rudy Wiguna and Komelia Ersan.According to the filing, the decision also takes into consideration the past yearly losses and shareholder’s deficit of Boga at IDR114.65 billion (around RM36.75 million), as of 31 August 2017. It added that the disposal of its shares allows for the B-Food Group to “divest its non-profitable foreign investment” as well as recover a portion of the inter-company debt.The statement added that the move has no effect on share capital and shareholding structure of B-Food. However, it has resulted in a loss of around RM13.27 million, based on its first quarter results ending 31 July 2017.Boga Lestari Sentosa was incorporated in 2005, and started managing Kenny Rogers Roasters since 2011. Currently, the restaurant chain has 10 restaurants located in Jakarta, Indonesia. It has a issued share capital of IDR127.61 billion (around RM40.9 million), comprising approximately 13.83 million PT Boga shares.In June this year, B-Food CEO Datuk Lee Kok Chuan stepped down, while executive director Sydney Lawrance Quays takes on the CEO role. According to a filing on Bursa Malaysia, Lee’s resignation was due to his work commitments at Mazda distributor Bermaz Auto, formerly known as Berjaya Auto. Currently, BFood manages brands such as Starbucks, Kenny Rogers Roasters and Jollibean in Malaysia.