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Sunday, July 24, 2005

Body Shop in the hand of Azman Yahya

On 19 July 2005, Azman Yahya announced his plan to take over Bolton. He intend to privatise Kejora Harta as well.

Kejora Harta, control a company call Rampai-Niaga Sdn Bhd, is the Body Shop franchise holder in Malaysia, with its 41 stores nationwide and 27% growth in 2004. Rampai-Niaga posted revenue of RM56.8mil for its financial year ended Dec 31, 2004 and a pre-tax profit of RM16.4mil. Net profit was at RM12mil.

"Should the takeover of Kejora Harta be an all-cash deal, Bolton would have to pay RM112.1mil to buy the remaining shares and warrants it does not own. That price would value Rampai-Niaga at 9.34 times its 2004 earnings, a snip for a company that has been showing profit growth of over 20% per annum. " The Star comment in its report.

Kejora Harta and The Body Shop should remain a public listed company in Malaysia. Minority shareholder in Kejora Harta should reject the offer from Bolton

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