PETALING JAYA: BIG Pharmacy Healthcare Sdn Bhd has clinched a deal to buy its competitor Caring Pharmacy Group Bhd from convenience store operator 7-Eleven Malaysia Holdings Bhd for a RM900 million worth deal.
According to a source who spoke to The Edge, 7-Eleven has closed a deal for the sale of Caring Pharmacy. An announcement on the transaction is expected to be made as soon as today. (July 21).
Driven by the possible sale of Caring Pharmacy, shares of 7-Eleven gained 5.2 per cent or 11 sen to RM2.24.
It was further reported that the counter hit a high of RM2.29 in the morning trading session, making it one of the top gainers on Bursa Malaysia on Friday. About 212,400 shares have changed hands so far.
7-Eleven owns 75 per cent of Caring, while the remainder is owned by Motivasi Optima Sdn Bhd.
Meanwhile, 7-Eleven’s largest shareholder is Berjaya Corp Bhd’s founder Tan Sri Vincent Tan, who controls 28.34 per cent of the company.
On the other hand, BIG Pharmacy, which was the third highest bidder for Caring Pharmacy, has emerged as the winner after 7-Eleven’s negotiations with the two other main bidders for Caring Pharmacy, the US-based private equity fund Carlyle Group Carlyle and Luxembourg-based investment advisory firm CVC Capital Partners, fell through.
Sources say that in October last year, it was reported that Carlyle Group was at the advanced stage of negotiation in acquiring Caring Pharmacy.
Apparently, Carlyle Group had made a RM1.3 billion offer to buy Caring Pharmacy, however, 7-Eleven was seeking between RM1.5 billion and RM1.8 billion.
Meanwhile, BIG Pharmacy, which operates 282 outlets, is actively expanding its stores ahead of its planned initial public offering (IPO).
A check by the Companies Commission of Malaysia (SSM) revealed that BIG Pharmacy is 100 per-cent owned by BIG Pharmacy Holdings Sdn Bhd (BPHSB).
