PH firm buys stake in 7-11 Malaysia operator

Investment holding firm Berjaya Philippines Inc. has invested in the company that owns and operate the 7-Eleven convenience store chain in Malaysia, positioning itself in a retailing format that benefits from rapid urbanization.

Berjaya disclosed to the Philippine Stock Exchange on Wednesday that it now held 18 million shares of 7-Eleven Malaysia Holdings Berhad (SEM), equivalent to 1.59 percent of total shares.

The most recent block of shares acquired by Berjaya from the open market of Bursa Malaysia consisted of 6.5 million common shares acquired at an average of 1.48 Malaysian ringgit, or P19.14 a share. The block was equivalent to 0.58 percent of additional equity in SEM worth about P124.47 million.

Incorporated in 2013, SEM—through its wholly owned subsidiary 7-Eleven Malaysia Sdn. Bhd—is the owner and operator of 7-Eleven stores in Malaysia. 7-Eleven Malaysia is the single-biggest convenience store chain in Malaysia with more than 2,100 convenience stores nationwide.

The stock purchases were made in the Malaysian open market during the period starting March 1 to Sept. 3 this year, Berjaya said.

“The SEM shares were acquired free from all encumbrances and the acquisition was funded from the issuer’s internal funds,” the disclosure said.

Through subsidiary Philippine Gaming Management Corp., Berjaya is engaged in the leasing of online lottery equipment and providing software support. In 2010, the company also invested in Berjaya Pizza Philippines Inc., a company engaged in the manufacture, sale and distribution of food and beverages, and to operate, own, franchise, license or deal in restaurant related business operations.

Berjaya likewise fully owns the company that operates Berjaya Makati Hotel in Makati City. In 2012, it invested in automobile distribution firm Berjaya Auto Philippines Inc. and wholesaler Cosway Philippines Inc. Berjaya Auto has entered into a distributorship agreement with Mazda Motor Corp. of Japan while Cosway has yet to start commercial operations.

The company also controls H.R. Owen Plc, a UK-based luxury vehicle dealership operator. It has also invested in SsangYong Berjaya Motor Philippines Inc., another corporation engaged in the sale and distribution of all types of motor vehicles.