7-Eleven Malaysia weighs selling pharmacy chain Caring, sources say
Convenience store operator 7-Eleven Malaysia Holdings is weighing exiting its pharmacy chain, said people with knowledge of the matter.
The Kuala Lumpur-listed company is working with an adviser on the potential divestment of Caring Pharmacy Group, which is attracting interest from some Japanese parties, the sources said. The company could seek a valuation for the retailer of about US$400 million in a deal, said one of them, who asked not to be identified as the process is private.
Deliberations are ongoing, and 7-Eleven Malaysia could decide not to proceed with the planned sale, the sources noted. 7-Eleven Malaysia and Berjaya Corp did not immediately respond to requests for comment by phone and email.
Founded in 1994 by 5 pharmacists, Caring sells pharmaceutical, healthcare and personal care products, according to its website. It has over 120 stores across Malaysia as at 2019. Caring was traded on the Bursa Malaysia for 6 years before being purchased by 7-Eleven Malaysia in 2020 for RM292 million (S$91.6 million), according to data compiled by Bloomberg, and delisted.
7-Eleven Malaysia is the biggest 24-hour convenience store operator in the South-east Asian nation, according to its website. Its largest shareholder is Berjaya Corp founder Vincent Tan, who controls about 44.7 per cent of the stock, according to the chain’s 2021 annual report.
The company started offering franchising programmes to local entrepreneurs in 2009 after the number of stores in its network crossed the 1,000 mark the same year. Bloomberg
A NEWSLETTER FOR YOU
Asean Business
Business insights centering on South-east Asia's fast-growing economies.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Asean
Thai police raid illegal bitcoin mining operation
Thailand’s April inflation rises slightly, first time in 7 months
Myanmar junta bans men from applying to work abroad: statement
Microsoft CEO pledges RM10.5 billion in cloud, AI investment in Malaysia
OCBC’s Indonesia subsidiary completes acquisition of PT Bank Commonwealth
Thailand to increase daily minimum wage to 400 baht in Oct