While I like KFC as a business and brand, I hate the wastages that the BOD has a hand in wasting company's funds. Do they really need to revalue their assets? If they need to revalue because they wanted to sell the business, they can always do it once the sale is confirmed (i.e. due diligence) Just because they want to improve the balance sheet, they do this in wasting shareholder's funds. Will the revaluation change the fundamentals of the company. By doing revaluation, you think more people will eat KFC's fried chicken?
I am wondering whether anyone is related to First Pacific Valuers Property Consultant, the company that was appointed to do the revaluation.
Johor Corp must learn how to be a majority shareholder.
See the announcements below
The Board of Directors of KFC Holdings (Malaysia) Bhd (“KFCH” or the “Company”) wishes to inform that it has carried out a revaluation exercise on all its properties as per attached.
(a) Rationale for the revaluation
The revaluation was conducted to determine the current market values of all its properties as per its accounting policy where the Group revalues its properties comprising land and buildings every five years and at shorter intervals whenever the fair value of the revalued assets is expected to differ materially from their carrying value. The Group had previously revalued all its properties on 24 August 2005.
(b) Revaluation surplus
The details of the revaluation surplus/impairment losses are as per attached.
(c) The effect of the revaluation surplus on the net assets per share of the group
The revaluation exercise has resulted in an increase in the net assets per share of the Group by 11 sen.
(d) The name of the valuers
The valuations of all the properties were carried out by independent professional valuers, First Pacific Valuers Property Consultants Sdn Bhd.
(e) The date of valuation
The date of the revaluation was 15 December 2010.
Serious Investing!
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