Paramount Secures 28% Stake In Envictus International For $29.5m In Strategic Diversification Move

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.