The proposed JV to undertake Starbucks Coffee chain in Brunei would enhance earnings for the group in the medium to long term.
It will have management and planning rights of Starbucks’ operations in Brunei, while Deluxe Daily Food Sdn Bhd will assist in obtaining the relevant operation licenses and café sites in Brunei.
This development also represents a good opportunity for BJFood to expand and establish footprint in the F&B industry in Brunei.
The cash of rm6.2 million will be funded either by internally generated funds or bank borrowings.
Its strong balance sheet is supportive of its expansion into Brunei, given its debt free status and cash pile of rm11 billion as of 1QFY2014.
The group plans to increase the Starbucks store count in Brunei to 10 in five years.
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