Bison expands to Myanmar with 2 outlets at airport
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Bison Consolidated Bhd is expanding its myNEWS.com press and convenience retail brand to Myanmar via a management agreement (MA) with Singapore-based SMI Retail Pte Ltd.
In a filing with Bursa Malaysia yesterday, Bison said its wholly owned subsidiary Bison Stores Sdn Bhd has signed the MA with SMI Retail, a wholly owned subsidiary of Singapore-listed Singapore Myanmar Investco Limited.
SMI Retail intends to establish two myNEWS.com outlets at the new terminal of Yangon International Airport and has agreed to enter into the MA to appoint Bison Stores as the independent contractor to provide management services and advisory support.
Under the MA, Bison Stores agrees to grant SMI Retail a revocable, non-exclusive, non-transferable license to the proprietary business format and retail management and control system developed by Bison Store.
The MA is valid for five years and is renewable for a further five years upon mutual agreement. SMI Retail’s right to use the Intellectual Property Right is derived solely from the MA.
If required, SMI Retail will provide assistance in obtaining registration of any trademarks or other intellectual property rights need in Myanmar.
SMI Retail will also pay Bison Stores a minimum monthly management fee or a percentage of the gross revenue of the business, whichever is higher. All salaries, remuneration, related expenses and costs of secondment of the outlet management and support staff will also be borne by SMI Retail.
The MA is subject to approval of any other relevant authorities or any other third parties with respect to the implementation of the MA, if required.
Questions & Answers
Q.Who will be running the myNEWS.com outlets in Myanmar?
Who will be running the myNEWS.com outlets in Myanmar?
SMI Retail Pte Ltd, a Singapore-based company and subsidiary of Singapore Myanmar Investco Limited, intends to establish and run the two myNEWS.com outlets at Yangon International Airport. They will receive management services from Bison Stores Sdn Bhd.
Q.What is the duration of the management agreement between Bison and SMI Retail?
What is the duration of the management agreement between Bison and SMI Retail?
The initial management agreement is valid for five years. It can be renewed for an additional five years if both parties mutually agree to extend the arrangement after the initial term expires.
Q.How will Bison be compensated for its role in the Myanmar expansion?
How will Bison be compensated for its role in the Myanmar expansion?
Bison Stores will receive either a minimum monthly management fee or a percentage of the gross revenue generated by the business, whichever amount is higher. SMI Retail will also cover staff costs.
Q.Where exactly will the new myNEWS.com outlets be located in Myanmar?
Where exactly will the new myNEWS.com outlets be located in Myanmar?
SMI Retail intends to establish both of the new myNEWS.com outlets at the new terminal within Yangon International Airport. This specific location was identified in the agreement.