QSR Brands Bhd gets its shareholders nod to increase its stake in KFC Holdings (M) Bhd (KFCH) up to 32.9% via open market, said group managing director, Datuk Johari Abdul Ghani.

QSR is currently the single largest shareholder of KFCH with 60.05 million shares representing 30.29% stake.

He said this was the best time to acquire those stakes in the open market, as the share price was now lower due to avian flu case.

"It is a good opportunity for us to acquire more stake as the price is lower this time, but we would keep at the 32.9% level," he told reporters after the company's EGM here yesterday.

"The price to be paid for the additional KFCH shares would be based on their market price at the time of purchase and would not be more than RM5.10 per share," he said.

KFC share price as of midday yesterday stood at RM3.12.

He said QSR first acquired KFCH's shares at an aggregate price of RM5.10 per share via the acquisition of CI Enterprise Sdn Bhd as part of its recently completed restructuring scheme.

Johari said the acquisition would enhance its long-term earnings growth as KFCH was expected to continue recording positive performance, barring any unforeseen circumstances.

The proposed share purchase would not have any impact on the share capital of QSR and its major shareholders as well as its earnings and net tangible assets for the financial year ending Dec 31, 2004.

"But it is expected to contribute positively to QSR's future earnings," Johari said.