KLANG, Aug 3 — KUB Malaysia Bhd’s plan to dispose of its fast food chain business, A&W Malaysia Sdn Bhd will be completed by month-end, and the diversified group is also likely to sell the 0.42 hectare plot of land of its iconic A&W outlet in Petaling Jaya.

KUB President and Managing Director Datuk Abdul Rahim Mohd Zin said the group constantly reviews its asset position and the disposal of both its A&W stake and the land were the only divestments the company had looked into so far.

“If we get better value for the (land) disposal, we will go for it, because we are not property developers and we don’t want to take any development risk,” he told reporters after launching two new liquefied petroleum gas (LPG) trucks here today.

However, Abdul Rahim said the company would also consider a joint-development project as an alternative plan for the land which currently has a gross development value of RM245 million and a market value of RM28 million.

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“Following the development order obtained from the Petaling Jaya Municipal Council, there is now an added premium of RM10 million (to the market value).

“The (best) offer that we received so far is around that value (of RM38 million) too,” he said.

Meanwhile, on the company’s liquefied petroleum gas (LPG) business, Abdul Rahim said its RM10.7 million satellite bottling plant located in Hulu Kelang has reached 76 per cent completion and was on-track for full completion by year-end.

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“The satellite plant is expected to produce at least 1,500 tonnes of LPG per month for the Klang Valley market,” he said. Going forward, Abdul Rahim said the company was evaluating the market feasibility to set up an additional three bottling plants.

“We are thinking of another two plants in the Klang Valley and another in Greater Johor because our market share in the state is quite big at around 20 per cent.

“KUB has a 10 per cent market share in Malaysia’s LPG segment,” he added. — Bernama