MALAYSIA January 2020
 
Mamee-Double Decker saves Khee San Bhd from bankruptcy
 
Financially-troubled candy producer Khee San Bhd has been ‘saved’ from possible bankruptcy, after major snack food player, Mamee-Double Decker (M) Sdn Bhd offers to take up to 45.1% of its shares.
Mamee will assume control of Khee San, the producer of Fruit Plus range of candy confectionery, after the proposed share purchase and be obligated to make a mandatory general offer for the remaining shares it does not own as it plans to keep the candy maker’s listing status.
Mamee was established by Datuk Pang Chin Hin in 2012 and was taken private by the family in 2012. The company was listed on Bursa in the 1990s until it announced a selective capital repayment in 2011. By 2012, Mamee had been taken private and delisted from the stock exchange. The company was privatised as its major shareholders felt its stock was undervalued.
Post-privatisation, Mamee continued to grow in terms of revenue and net profit. It posted a net profit of RM28.85 million (US$9.54 million) in 2018, up 10.3% from RM26.16 million (US$8.65 million) in 2014 while revenue grew 25.8% to RM767.34 million (US$253.8 million) from RM609.78 million (US$201.7 million) in the same period.
The purchase of Khee San might require Mamee to relist on Bursa. Upon the approval from shareholders and regulators, the 45.1% stake purchase will cost Mamee up to RM61 million (US$20.18 million). Most of the proceeds will have to go towards the payment of Khee San’s outstanding debt obligations.
Financially-distressed London Biscuits Bhd, which was Khee San’s largest shareholder with 20% share has exited the company by disposing its shares in the open market.
In the 3rd quarter ended September 2019, Khee San reported a net loss of RM44.65 million (US$14.77 million) on revenue of RM18.54 million (US$6.13 million).
 

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