7-Eleven Malaysia plans to take control of Caring Pharmacy
Convenience store operator 7-Eleven Malaysia Holdings is to boost its stake in Caring Pharmacy Group and take control of the chain.
7-Eleven Malaysia says it plans to buy a further 25.35 per cent of the Caring Pharmacy business, taking the total shareholding under control of its related parties and itself to 38.57 per cent. That would require a mandatory general takeover offer under Malaysian stock exchange regulations as it takes the combined stake over the 33-per-cent threshold.
The founder of Berjaya Group, Tan Sri Vincent Tan, is a major shareholder of 7-Eleven Malaysia Holdings and has shares in Caring Pharmacy Group.
Caring Pharmacy was established in 1994 by five pharmacists, who were course-mates in the School of Pharmacy, Universiti Sains Malaysia. The first outlet opened in Taman Muda, Cheras and the chain has now grown to 121 stores.
In a stock-exchange filing, 7-Eleven Malaysia said it wants to take its shareholding above 50 per cent, but will maintain Caring Pharmacy’s independent listing.
Caring is a profitable player in the retail-pharmacy category and has a successful online business. Acquiring a majority stake in the pharmacy retailer would allow 7-Eleven Malaysia to expand its e-commerce operations using Caring’s expertise, as well as generally add to its product offer, networks and customer base.
The process will be completed in the first half of next year.