F&N (3689) - F&N loses Red Bull exclusive distributorship in Malaysia
March 27, 2015 : 6:01 PM MYT
KUALA LUMPUR (Mar 27): Beverage maker Fraser & Neave Holdings Bhd (F&N) has lost its dealership on the exclusive marketing, distribution and sale of Red Bull energy drinks in Malaysia.
In a filing with Bursa Malaysia this evening, F&N (fundamental: 2.1; valuation: 0.9) said its wholly-owned subsidiary F&N Beverages Marketing Sdn Bhd has today signed a transition agreement with Allexcel Trading Sdn Bhd.
Under the agreement, F&N Beverages and Allexcel Trading had mutually agreed not to renew the terms of the principal agreement as both parties are unable to reach an agreement on the changes in commercial terms.
The parties, however, have agreed to a transition period of six months, which shall commence from April 1 to Sept 30, 2015. During the transition period, F&N Beverages will hand over the exclusive dealership to Allexcel Trading in phases.
To recap, F&N Beverages had, in February 2010, signed a principal agreement with Allexcel Trading for the exclusive distributorship of Red Bull energy drinks for an initial period of five years, from April 1, 2010, to March 31 this year.
F&N told the stock exchange that the non-renewal of the principal agreement is not expected to have a material negative impact on the operating or financial performance for the financial year ending Sept 30, 2015 (FY2015).
Shares of F&N closed unchanged at RM18.20 today, giving it a market capitalisation of RM6.66 billion. Year-to-date, the counter has risen 76 sen or 4.36%.
It is worth noting that F&N has lost the Coca-Cola franchise in September 2011.
http://www.theedgemarkets.com
March 27, 2015 : 6:01 PM MYT
KUALA LUMPUR (Mar 27): Beverage maker Fraser & Neave Holdings Bhd (F&N) has lost its dealership on the exclusive marketing, distribution and sale of Red Bull energy drinks in Malaysia.
In a filing with Bursa Malaysia this evening, F&N (fundamental: 2.1; valuation: 0.9) said its wholly-owned subsidiary F&N Beverages Marketing Sdn Bhd has today signed a transition agreement with Allexcel Trading Sdn Bhd.
Under the agreement, F&N Beverages and Allexcel Trading had mutually agreed not to renew the terms of the principal agreement as both parties are unable to reach an agreement on the changes in commercial terms.
The parties, however, have agreed to a transition period of six months, which shall commence from April 1 to Sept 30, 2015. During the transition period, F&N Beverages will hand over the exclusive dealership to Allexcel Trading in phases.
To recap, F&N Beverages had, in February 2010, signed a principal agreement with Allexcel Trading for the exclusive distributorship of Red Bull energy drinks for an initial period of five years, from April 1, 2010, to March 31 this year.
F&N told the stock exchange that the non-renewal of the principal agreement is not expected to have a material negative impact on the operating or financial performance for the financial year ending Sept 30, 2015 (FY2015).
Shares of F&N closed unchanged at RM18.20 today, giving it a market capitalisation of RM6.66 billion. Year-to-date, the counter has risen 76 sen or 4.36%.
It is worth noting that F&N has lost the Coca-Cola franchise in September 2011.
http://www.theedgemarkets.com
