KUALA LUMPUR: Paramount Corporation Bhd has signed a share purchase agreement to buy a 28 per cent stake in Singapore-listed Envictus International Holdings Ltd for S$38.33 million (RM126.3 million).
Paramount said in a Bursa Malaysia filing that the acquisition was made via its wholly-owned Venice Concepts Sdn Bhd.
It is buying 85.17 million shares from JAG Capital Holdings Sdn Bhd.
Envictus, which operates across Malaysia’s food and beverage (F&B) sector, manages a portfolio of businesses under three core divisions namely food services, trading and frozen food, and dairies.
Its food services division operates 100 Texas Chicken outlets and 50 San Francisco Coffee stores nationwide.
The trading and frozen food segment includes Pok Brothers, a major food distributor to restaurants, while the dairies arm handles the sale of SuJohan brand creamers.
Paramount said the investment represents a strategic move in diversifying its portfolio and marks its expansion into the high-growth F&B sector.
“Accordingly, the proposed acquisition will enable Paramount to leverage on a full range of F&B offerings, both upstream (wholesaler and distributor of food produce) and downstream (restaurant operations), to support long-term earnings growth,” the filing said.
“This marks a timely and strategic step forward for Paramount’s continuous growth,” said Paramount group chief executive officer Jeffrey Chew.
Following the completion of the deal, Paramount will become one of the controlling shareholders of Envictus.
Paramount, which divested its education business in 2018, has since expanded into digital start-ups and overseas property projects.
It currently owns two restaurants here namely Dewakan, Malaysia’s only two-Michelin Star restaurant, and Bidou, which serves classic French cuisine.
The proposed acquisition is expected to be completed by Aug 7 and will be funded via a combination of internal funds and bank borrowings.
RHB Investment Bank Bhd is the principal adviser.
As published: New Straits Times