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