Berjaya buys pharmacy to set up JV to expand business

PETALING JAYA: Berjaya Corporation Bhd (BCorp) has acquired a 80% stake in Morning Charm Sdn Bhd, a community pharmacy store, for RM80,000 which will then partner with CW Retail Asia Pty Ltd to operate pharmacies under the co-brand name of Chemist Warehouse Berjaya Asia and to supply goods and services to pharmacies.
In a stock exchange filing yesterday, BCorp said its wholly-owned unit, Berjaya Group Bhd, has subscribed for 80% equity interest including the acquisition of the initial two subscribers’ shares in Morning Charm.
Morning Charm has a 100% wholly-owned subsidiary, namely Monarch Wonder Sdn Bhd.
It added that on March 3 2016, Morning Charm and Monarch Wonder had entered into a joint venture cum shareholders’ agreement with CW to operate Chemist Warehouse Berjaya Asia.
Melbourne based CW supplies goods and services to pharmacies and operate pharmacy chains in Australia.
According to the JV, Monarch Wonder will issue 99,998 new RM1.00 shares which Morning Charm will subscribe 74,998 shares for RM74,998, while CW will subscribe for the balance 25,000 shares.
Upon completion, Morning Charm will hold 75% equity interest in Monarch Wonder, whilst CW will hold the remaining 25% equity interest.
“The project will enable the BCorp Group to expand and strengthen its pharmacy distribution and retail businesses under the co-brand names, as well as making its foray into the pharmacy warehousing business sector,” BCorp said.
Under the agreement, Monarch Wonder as the joint venture vehicle will operate a chain of pharmacies in Malaysia and other countries under the co-brand name of Chemist Warehouse Berjaya Asia or such other co-brand names as mutually agreed.
It will also supply goods and services to Cosway Pharmacies, which will be re-branded as Berjaya My Chemist pharmacies and Tigas Alliance pharmacies.
Chemist Warehouse Berjaya Asia and Berjaya My Chemist pharmacies are members of Tigas Alliance, a pharmacy banner group in Malaysia which operates pharmacy services fulfillment, marketing and group-buying infrastructure.
BCorp said the deal said its earnings is expected to be enhanced after the commencement of the operations of the project beyond its fianancial year ending April 30, 2016.
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