Tunku Naquiyuddin Tuanku Ja'afar (left) exchanging
documents with Patrice Rincheval after the signing
of the partnership agreement.
FRENCH retailer Carrefour, via its operating company Magnificient Diagraph Sdn Bhd (MDSB), has signed a partnership agreement with Syarikat Pesaka Antah Sdn Bhd, a firm linked to the Negri Sembilan royal family, under which the latter will buy an initial 30% stake in MDSB.
The agreement was signed yesterday after a lengthy discussion between the parties. A memorandum of understanding was first signed with Pesaka Antah on Jan 28, 2004.
Under the agreement, Pesaka Antah executive chairman Tunku Naquiyuddin Tuanku Ja’afar will be appointed to the board of directors of MDSB.
“This partnership permits us to fulfil the Malaysian Government’s requirement on bumiputra equity,” Carrefour Malaysia Sdn Bhd managing director
Patrice Rincheval said at the signing agreement ceremony in Putrajaya.
The Foreign Investment Committee stipulates that foreign companies must have at least 30% bumiputra equity. MDSB, which opened its first Carrefour outlet in 1994, has not had any bumiputra equity since the exit of its former partner in February 2001.
The 30% stake was previously owned by Datuk Ishak Ismail, the former managing director of KFC Holdings Bhd.
Other shareholders in MDSB are Carrefour Netherlands BV, which owns 26%, Carrefour Malaysia (9%) and Mildew BV (65%).
Rincheval said the partnership would enable Carrefour to take advantage of Pesaka Antah's knowledge, resources and participation in expanding locally.
Formed on July 30, 1974, Pesaka Antah is involved in property development, information technology, engineering services, advertising and palm oil, as well as other general services.
The company is named after Tuanku Antah, who was the sixth Yang Dipertuan Besar of Negri Sembilan between 1872 and 1888. Tuanku Antah is the great-grandfather of the state’s present ruler, Tuanku Ja’afar ibni AlMarhum Tuanku Abdul Rahman.
Rincheval said the company planned to open its ninth store in Kepong by the end of this year and was looking to open six more stores in Peninsular Malaysia in future.
“We also plan to expand in Sabah and Sarawak as well. It is time for us to grow again after we have been quiet for some time,” he said, adding that the company aimed to be the number one hypermarket retailer in Malaysia in the next few years.
Carrefour currently ranks number two in Malaysia after Giant. – Bernama
