KUALA LUMPUR, Malaysia -- KFC Holdings Malaysia Bhd has been granted approval by Louisville, Ky.-based Yum! Brands Inc., owner of several quick-serve chains including Pizza Hut and KFC, to restructure its businesses.
According to AFX News, KFC Holdings managing director Johari Abdul Ghani said the change will allow the company to franchise and operate both Pizza Hut and KFC units in the area for 10 years, with an option to renew for another 10 years. Additionally, the agreement requires KFC Holdings to open 16 Pizza Huts and 16 KFCs annually.
KFC Holdings director George Ting will stay on with the company, but, per Yum's insistence, will divest his stake in Shakey's pizza franchises in the Far East.
Johari said KFC Holdings next must secure the consent of creditor Alliance Bank for the restructuring plan. Once approved, he expects the company will submit an application to the Malaysia Securities Commission and then complete the restructuring by September.
In 2002, KFC Holdings posted a net profit of 61.3 million ringgits (U.S. $16.1 million), up from 47.7 million (U.S. $12.6 million) a year earlier. Group sales rose to 1.25 billion ringgits (U.S. $329 million) from 1.07 billion ringgits (U.S. $282 million) in 2001.