Saudi Company Buys Over McDonald's Franchises For Singapore and Malaysia
KUALA LUMPUR: McDondald’s Corp may have agreed to sell their franchise’s rights in Singapore and Malaysia, that has been owned for 20 years by the company to Reza Group from Saudi Arabia at AS$400 million (RM1.65 bilion), according to sources.
Reza Food Services Co. Ltd, which owns and operates McDonald’s restaurants in the western and southern Saudi territories has reportedly approached CIMB Malaysia to finance the takeover, according to two unnamed sources, although the deal has not been finalized.
According to sources, McDonald’s has expressed interest to work with a family-owned businesses in the region and local investors with a view towards producing long term partnerships.
The basic requirements has been finalised and the business transaction is estimated to be finalized by year end, said the source, Reuters reports.
However, CIMB Malaysia and Reza have not released a statement regarding the issue.
Sources said CIMB is looking into the detailed loan structure to finance the deal and the agreement will be made in Malaysian ringgit and Singapore dollar.
Last July, McDonald’s said it was looking for partnerships for their restaurants in Singapore and Malaysia as well as consulting with other parties, however they were not given any details or time frame.
McDonald's has about 120 restaurants in Singapore and about 260 in Malaysia. The move is in line with the company's restructuring of its Asian operations, bringing in partners as it switches to a less capital-intensive franchise model.
-mD
