Bursa-listed Paramount Corp is paying 45 cents each for nearly 85.2 million shares in SGX-listed Envictus International, becoming the second largest shareholder with a stake of 28%.
Envictus last traded at 35 cents. The typically thinly-traded shares are up 7.81% year to date.
Paramount Corp is buying this stake via an entity called Venice Concepts.
The seller is JAG Capital Holdings, which is 96%-owned by Malaysia's Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, with his wife Datin Seri Zurwati Haslinda Zainal Bahry holding the remaining 4%.
JAG Capital, according to filings to the SGX, has on July 29 entered into this sale and purchase agreement.
JAG Capital now holds 29.6% of Envictus, whose other key shareholder is executive chairman and group CEO Jaya JB Tan, with a 28.78% stake.
Envictus operates the Texas Chicken and San Francisco Coffee franchises in Malaysia. It has interests in frozen food and dairies too.
As reported by The Edge Malaysia, Paramount Corp, according to its group CEO Jeffrey Chew Sun Teong, plans to help double the number of Texas Chicken outlets in Malaysia to 200. It aims to help turn around the loss-making San Francisco Coffee as well.
For its FY2021 to FY2023, Envictus was loss-making but managed to report earnings of RM50.6 million for FY2024. In the most recent 1HFY2025, it reported earnings of RM16.1 million.
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According to Chew at a briefing on July 30, Paramount, whose core business is in property, has no plans for further F&B acquisitions following this $38.33 million deal.
“This is a strategic growth opportunity for us. Property will remain our core business, contributing around 70% to group earnings,” said Chew, as reported by The Edge Malaysia.
He points out that Envictus is now trading at just 4 times earnings, a much lower valuation versus other Malaysia-based companies in this industry. Oriental Kopi, for example, is valued at 28 times.
"It could be a long-term investment, but if the market changes, we can exit. For now, our priority is to grow this business rather than pursue more F&B acquisitions,” said Chew.
