KUALA LUMPUR: Brahim's Holdings Bhd (Brahim's) has not held talks with Malaysia Aviation Group (MAG) on the latter's potential sale of 30 per cent stake in Brahim's Food Services Sdn Bhd (BFS) since both parties went separate ways last year.
Brahim's group chief executive officer Mohd Fadhli Abdul Rahman said it is up to MAG to decide on what to do with its stake in BFS.
"We never talk about that (divestment of the 30 per cent stake) because it is theirs and it is up to them to do what they want with their 30 per cent (stake)."
"They (Brahim's and MAG) would have a shareholders' agreement between them. So, anything that happens is between the two shareholders," he told Business Times in an interview.
When asked if Brahim's is still interested to sell its 70 per cent stake to MAG, Mohd Fadhli said the company is open for discussion as long as the price is right.
But he said no negotiation sessions took place between the two parties after Deloitte Malaysia completed the valuation exercise to determine the price value of Brahim's 70 per cent stake in BFS last year.
"While the Deloitte exercise has long gone, the negotiation sessions between both parties never take place," he said.
Mohd Fadhli added that as a service provider, BFS is ready to do business with MAG if the group ever requires in-flight meals from the company again.
"We are a service provider. Whoever needs our service of course we'll try our best to serve. I don't know the likelihood of them (MAG) returning again."
"I don't want to comer on the likelihood but if it happens, I can say that as a service provider, we are always open," he said.
He also said there are no instructions from Brahim's board of directors or any communication held with MAG on the former's interest to buy the latter's 30 per cent stake in BFS.
New Straits Times first reported on the end of partnership between BFS and MAG's airline unit Malaysia Airlines Bhd in June last year.
The 26-year working relationship between the two companies officially ended on August 31 2023.
Currently, Malaysia Airlines is sourcing in-flight meals from various vendors, including MAG's catering unit Mas Awana Services Sdn Bhd and Pos Aviation Sdn Bhd.
Moving forward, Mohd Fadhli said BFS is focused on securing new airline customers for its aviation business.
The company also looks forward to venturing into non-aviation business.
Some of the non-aviation business that the company is looking into includes providing institutional catering to hotels and hospitals.
"We're trying our best to stay relevant in the business and survive and hopefully we'll manage to also venture into a new line of business. We've talked about this for so long (non-aviation business) but it's not something that can easily be done," Mohd Fadhli said.
BFS is also planning to do a recapitalisation as it needs to invest in new and advanced machinery to maintain and grow its in-flight catering business.
Mohd Fadhli said BFS is discussing with its two shareholders on the exercise to see if the company could secure some investments for capital expenditure.
BFS is also looking to potentially secure financial from financial institution or another investor for the recapitalistion exercise in the future.
"We're going back to our current shareholders, which is Brahim's and MAG, depending on how much they want to pump in."
"Subsequently after that, we might be looking at the financial institution, and beyond that maybe we'll look for another investor. It all depends on what happens stage by stage," Mohd Fadhli said.