Paramount, a Malaysian property developer, is preparing to secure a 28% share in Envictus International, a firm managing both Texas Chicken and San Francisco Coffee within Malaysia, with an investment of approximately US$29.5 million.
Details of the Acquisition
This acquisition would have Venice Concepts, a wholly-owned subsidiary of Paramount, purchase around 85.17 million shares constituting the 28% stake in Envictus International, currently listed on the Singapore Exchange. The shares would be directly acquired from JAG Capital.
Envictus International has a diversified presence across various sectors. Besides its operations managing quick-service and coffee chains, the company also engages in trading and the frozen food business through Pok Brothers. Additionally, it has a dairy division marketing the SuJohan creamer brand.
Paramount’s Current Holdings and Future Growth Strategy
Paramount already has ownership of two restaurants within Kuala Lumpur – Dewakan and Bidou – that were recently inaugurated. This acquisition marks a strategic move supporting Paramount’s efforts to future-proof its business through investments in alternative sectors.
According to Jeffrey Chew Sun Teong, Group CEO of Paramount, this acquisition is a step towards diversifying the company’s earnings base. He voiced his optimistic view of the evergreen Food & Beverage (F&B) sector and highlighted the potential it holds for Paramount’s growth.
This investment in Envictus International is Paramount’s second significant financial move since the previous year, when it acquired a 21.54% stake in EWI Capital for a sum of $39.9 million.
Questions & Answers
What is the expected impact of Paramount’s acquisition of a stake in Envictus International?
The acquisition is expected to help Paramount diversify its earnings base and invest in the evergreen F&B sector.
What does Envictus International do?
Envictus International operates Texas Chicken and San Francisco Coffee in Malaysia. Besides its quick-service and coffee chains, the company also manages a trading and frozen food business via Pok Brothers, and markets the SuJohan creamer brand through a dairy division.
What was Paramount’s major financial move last year?
In the previous year, Paramount made a significant investment by acquiring a 21.54% stake in EWI Capital for $39.9 million.