French retailer, Carrefour via its operating company, Magnificient Diagraph Sdn Bhd has signed a partnership agreement with Syarikat Pesaka Antah Sdn Bhd, reports the Malaysian news agency Bernama.
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Under the deal, Syarikat will buy an initial 30% stake in MDSB. SPA’s executive chairman, Tunku Naquiyuddin Tuanku Ja’afar will be appointed to the board of directors of MDSB.
“This partnership will permits us to fulfill the Malaysia government’s requirement on Bumiputera Equity,” Carrefour Malaysia’s managing director, Patrice Rincheval said at the signing agreement ceremony. Bumiputera, is generally used to mean Malays.
Under the Foreign Investment Committee (FIC) equity condition, foreign companies which do not have any Bumiputera equity are required to increase their Bumiputera equity to at least 30%.
MDSB has not had any Bumiputera equity since the exit of its former Bumiputera partner in February 2001.
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By GlobalDataThe 30% stake was previously owned by Datuk Ishak Ismail, the former managing director of KFC Holdings Bhd, when MDSB opened its first outlet Carrefour in 1994.
The other shareholders in MDSB are Carrefour Netherlands BV, which owned 26%, Carrefour Malaysia Sdn Bhd (9.0%) and Mildew BV (65%).
Rincheval said the partnership would enable Carrefour to take advantage of SPA’s local knowledge, resources and participation in the expansion of Carrefour’s business in Malaysia.
SPA, formed on July 30, 1974 is involved in property development, information technology, engineering services, advertising and palm oil as well as other general services.
