KUALA LUMPUR: KFC Holdings (M) Bhd's (KFCH) group managing director, Datuk Johari Abdul Ghani, said that the company expected its sales for the third quarter ended Sept 30, 2003, to increase between 20 per cent and 30 per cent given improved consumer spending. In the second quarter, KFC recorded a higher revenue of RM330.01 million versus RM298.20 million in the same quarter last year.

Johari said that KFC's revenue in the first and second quarter was very much affected by the Severe Acute Respiratory Syndrome (SARS) epidemic which has led to weaker consumer spending. "During the period, our sales were reduced," he told a press conference after the company's extraordinary general meeting (EGM) here Monday to seek shareholders' approval on the Group's reorganisation scheme that would ultimately lead to KFCH having a 100-percent stake each in! Ayamas Food Corp Bhd, KFC (Malaysia), KFC (East Malaysia) and KFC (Singapore).

Johari said that the shareholders unanimously approved the reorganisation scheme. On KFC's future direction following the completion of the reorganisation scheme, Johari said that the Group would now be "a very focused business.” Currently, Johari said the Group held a combined market share of 52 per cent in Malaysia and Singapore or between 20 and 30 per cent in Singapore and 60 percent in Malaysia.

The reorganisation schemed announced on Dec 20 last year entailed a management buyout (MBO) whereby it would see Ayamas transferring its listing status to a new company (Newco). The Newco would acquire 100 per cent in CI Enterprise Sdn Bhd, which owns 29.38 per cent of KFCH for RM291 million from its parent company, CI Holdings.

The Newco would also acquire 100 per cent in Pizza Hut’s business from KFCH for RM1 15 million and dispose of 100 per cent of Ayamas for RM260 million to KFCH. The reorganisation scheme would also include the dis­posal of 49 per cent of Permanis by KFCH to CI Holdings for RM35.28 million. Also, the Newco would hold a strategic 29.38 per cent in KFCH and 100 per cent of Pizza Hut (Malaysia) and Pizza Hut (Singapore).