PETALING JAYA: 7-Eleven Malaysia Holdings Bhd’s indirect 75%-owned subsidiary Caring Pharmacy Retail Management Sdn Bhd plans to open about 15 pharmacy outlets across the nation annually.
According to its circular to shareholders issued on Wednesday, each outlet opening required capital expenditure of between RM600,000 and RM800,000, depending on the format of the outlet.
Currently, 7-Eleven has 144 pharmacy outlets under the Caring brand name via the Caring group.
Caring has proposed to acquire stakes in The Pill House Sdn Bhd (TPH), Wellings Pharmacy Sdn Bhd as well as a number of business assets in pharmacies for RM48.86 million. This includes a 67% stake in TPH for RM25.51 million, a 60% stake in Wellings Pharmacy for RM19.90 million and business assets in four pharmacy outlets for RM3.45 million.
Upon completion of the acquisitions, the Caring group will have 171 pharmacy outlets. This includes an additional 23 pharmacy outlets under the ‘Georgetown Pharmacy’ brand name and four pharmacy outlets under the ‘Wellings Pharmacy’ brand name, all operating in the northern Malaysia region.
The proposed acquisitions are subject to approval being obtained from 7-Eleven shareholders at the forthcoming EGM and are expected to be completed by the first quarter of 2021.
7-Eleven aims to leverage on the strength of ‘Georgetown Pharmacy’ and ‘Wellings Pharmacy’ brands and reputation in the pharmacy segment in North Malaysia as well as to capitalise on the expected synergies from the enlarged group.
For its outlook, the group expects the pharmacy industry to continue growing steadily in Malaysia with the aging and growing population and the government’s commitment to improve public healthcare services. It expects the community pharmacy segment to become increasingly competitive as the segment benefits from the conducive pro healthcare business environment in the country.
7-Eleven explained that the existing Caring outlets are mostly located in the Klang Valley, Malacca and Johor.
“The acquisitions are part of the expansion plan to enter into the market in the northern part of Malaysia covering Penang, Kedah and Perlis, which will serve as a new platform of growth for the pharmacy business of the group as it provides immediate access to fully licensed and operational pharmacy business in the North Malaysia region with readily available large customer base.”
The existing Caring outlets are mostly located in the Klang Valley, Malacca and Johor.
