KFC Holdings (M) Bhd (KFCH) managing director Datuk Johari Abdul Ghani has sold his entire 5 per cent stake in the company, but remains a shareholder of KFCH parent company, QSR Brands Bhd.

He dismissed speculation that QSR is a takeover target following his sale of shares in KFCH.

Bursa Malaysia filings showed that Johari sold 4.5 million and 5.5 million a shares in KFC on January 4 and 5 respectively.

The sales sparked speculation on both counters, pushing their share prices higher yesterday. Shares of KFCH and QSR, which owns KFC in Malaysia, surged by 2.1 per cent and 20 per cent respectively yesterday.

KFCH gained 8 sen to close at RM3.82 while QSR advanced 54 sen to end at RM3.20.

“I disposed of the KFCH shares that I bought from Government of Singapore Investment Corp (GIC, in August 2003). Brokers placed out the shares to various buyers at RM3.60 per share,” Johari told Business Times yesterday.

Johari said while he no longer has KFCH shares, he still owns QSR shares through the 33 per cent block purchased in a management buyout (MBO).

It is believed that of the 33 per cent block, QSR executive chairman Datuk Izhar Sulaiman holds 25 per cent, Johari has 5.5 per cent and five key personnel together hold 2.5 per cent.

“My MBO shares remain intact. If there is still that 33 percent block, there is no way that QSR can be a takeover target,” Johari said.

Asked why he sold the KFCH shares, Johari said the shares were bought with borrowings which he now wanted to reduce.

“I wanted to de-gear myself, so I sold it a good price. I remain a shareholder of QSR. I want to remain a professional manager, holding a small block of the MBO shares,” he added.

QSR’s closing price yesterday was its highest since its revamp last year. After its restructuring exercise, QSR now manages the Pizza Hut business previously handled by KFCH. In return, KFC manages the broiler business together with its fast-food restaurant chain.