YEELEE (5584) - Yee Lee takes over Redbull exclusive distributorship from F&N
April 21, 2015 : 6:13 PM MYT
KUALA LUMPUR (Apr 21): Fast moving consumer products distributor Yee Lee Corp Bhd is once again the distributor for the ‘Red Bull’ energy drinks in Malaysia – and this time on an exclusive basis. It will be the sole distributor of the drinks here from Aug 1, 2015, taking over from beverage maker Fraser & Neave Holdings Bhd (F&N).
F&N (fundamental: 2.1; valuation: 1.1) had, on Mar 27, told the local bourse that it had mutually agreed with Allexcel not to renew the terms of their original agreement inked in February 2010 as both were unable to reach an agreement on the changes in commercial terms.
The parties then agreed to a transition period of six months, which shall commence from April 1 to September 30, 2015, during which F&N will hand over the exclusive dealership to Allexcel Trading in phases.
In a filing with Bursa Malaysia today, Yee Lee (fundamental: 1.0; valuation: 0.8) said its wholly-owned subsidiary Yee Lee Marketing Sdn Bhd has entered into a distribution partnership agreement with Allexcel Trading Sdn Bhd today.
The agreement sees the appointment of Yee Lee Marketing as Allexcel’s exclusive distributor to market, distribute and sell Red Bull Gold, Red Bull Less Sugar, and Red Bull Bottle energy drinks in Malaysia.
“The agreement is for a period of five years commencing from Aug 1, 2015 (initial term) and shall automatically be renewed for further periods of two years upon each anniversary thereof (subsequent terms) unless or until rescinded or terminated by either party giving to the other party a written notice at least three months prior to the expiry date of the initial term or subsequent terms,” the filing read.
Yee Lee also said the agreement is expected to contribute positively to its future profits from financial year 2016.
In January this year, Yee Lee announced that its wholly-owned unit Yee Lee Trading Co Sdn Bhd had ceased to be the non-exclusive distributor of Red Bull Energy Drink and Red Bull Sugarfree in Malaysia.
In a statement to Bursa back then, Yee Lee said Yee Lee Trading Co Sdn Bhd had served a written notice to Red Bull Asia FZE to terminate the distribution agreement with effect from Apr 30, 2015.
Yee Lee’s share has gained almost 53% from RM1.40 on Jan 2 this year. It closed one sen or 0.47% down at RM2.14 today, which gives the firm a market capitalisation of RM390.75 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
http://www.theedgemarkets.com
April 21, 2015 : 6:13 PM MYT
KUALA LUMPUR (Apr 21): Fast moving consumer products distributor Yee Lee Corp Bhd is once again the distributor for the ‘Red Bull’ energy drinks in Malaysia – and this time on an exclusive basis. It will be the sole distributor of the drinks here from Aug 1, 2015, taking over from beverage maker Fraser & Neave Holdings Bhd (F&N).
F&N (fundamental: 2.1; valuation: 1.1) had, on Mar 27, told the local bourse that it had mutually agreed with Allexcel not to renew the terms of their original agreement inked in February 2010 as both were unable to reach an agreement on the changes in commercial terms.
The parties then agreed to a transition period of six months, which shall commence from April 1 to September 30, 2015, during which F&N will hand over the exclusive dealership to Allexcel Trading in phases.
In a filing with Bursa Malaysia today, Yee Lee (fundamental: 1.0; valuation: 0.8) said its wholly-owned subsidiary Yee Lee Marketing Sdn Bhd has entered into a distribution partnership agreement with Allexcel Trading Sdn Bhd today.
The agreement sees the appointment of Yee Lee Marketing as Allexcel’s exclusive distributor to market, distribute and sell Red Bull Gold, Red Bull Less Sugar, and Red Bull Bottle energy drinks in Malaysia.
“The agreement is for a period of five years commencing from Aug 1, 2015 (initial term) and shall automatically be renewed for further periods of two years upon each anniversary thereof (subsequent terms) unless or until rescinded or terminated by either party giving to the other party a written notice at least three months prior to the expiry date of the initial term or subsequent terms,” the filing read.
Yee Lee also said the agreement is expected to contribute positively to its future profits from financial year 2016.
In January this year, Yee Lee announced that its wholly-owned unit Yee Lee Trading Co Sdn Bhd had ceased to be the non-exclusive distributor of Red Bull Energy Drink and Red Bull Sugarfree in Malaysia.
In a statement to Bursa back then, Yee Lee said Yee Lee Trading Co Sdn Bhd had served a written notice to Red Bull Asia FZE to terminate the distribution agreement with effect from Apr 30, 2015.
Yee Lee’s share has gained almost 53% from RM1.40 on Jan 2 this year. It closed one sen or 0.47% down at RM2.14 today, which gives the firm a market capitalisation of RM390.75 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
http://www.theedgemarkets.com
