Convenience store operating company 7-Eleven (M) Holdings Bhd saw its shares fall by 5% after reports said it would sell its pharmacy chain, Caring Pharmacy Group Bhd.
During the opening session of Bursa Malaysia, the 7-Eleven counter traded at RM1.60 before plunging to as low as RM1.55 around 10am this morning.
During the afternoon session, its shares declined 5 sen or 3.13% to RM1.55 with a trading volume of 3.12 million shares changing hands.
Revealing records, 7-Eleven is reportedly in a bid to dispose of Caring Pharmacy for around $ 400 million or RM1.78 billion.
It is understood that 7-Eleven and its advisors are in talks with several parties from Japan who are interested in acquiring the pharmacy chain.
For information, Caring Pharmacy was listed on Bursa Malaysia before exiting in May 2020 following the acquisition by 7-Eleven.
At the time, 7-Eleven was said to have launched a mandatory general offer to buy Caring Pharmacy at RM2.60 per share.
Meanwhile, 7-Eleven's net profit report for the first quarter ended March 31, 2022 (1QFY22) doubled from RM11.77 to RM24.38 on an annual basis.
The surge was contributed by the impressive performance of its department stores and pharmaceutical chains.
7-Eleven's quarterly revenue also increased 27.8% to RM839.98 million from RM657.13 million in 1QFY21 which was largely contributed by longer trading hours.
On the other hand, 7-Eleven shares are said to have 5 ‘buy’ and 1 ‘hold’ targets with target prices between RM2.05 and RM1.48.
