INVESTMENT IN MEZZANINE FRANCHISE
This scheme is to cater for existing Bumiputera-owned franchise businesses that seek financial assistance for expansion purposes.
Criteria Of Target Companies
- Registered with Registrar of Franchise (ROF) and Malaysian Franchise Association (MFA) as a franchisor / master franchisee / franchisee to a foreign franchisor
- 51% equity owned by Bumiputeras
- 51% of BOD and management are Bumiputeras
- Minimum of 2 years' uninterrupted Profit After Tax (PAT) track record Minimum PAT of RM500,000 for recent financial year.
- Minimum shareholders' funds of RM3.0 million.
Investment Structure
- To subscribe Ordinary Shares only or in combination of Ordinary Shares and 5% Cumulative Redeemable Convertible Preference Shares (CRCPS) Size Of Investment
- Ordinary Shares: minimum of 30% and maximum of 49% equity interest in target company or RM10 million, whichever is lower
- Preference Shares: minimum of RM1 million and maximum of RM5 million, subject to a gearing ratio of 2.0 times
Tenure Of Investment
- Ordinary Shares: Maximum of 4 years.
- Preferences Shares: Maximum of 5 years
