Paramount says not eyeing other F&B biz following Envictus stake buy

• Paramount is acquiring the 28% stake in Envictus for S$38.33 million (RM126.14 million) from JAG Capital Holdings Sdn Bhd. The deal is not subject to shareholders’ approval and is expected to be completed by Aug 7.

KUALA LUMPUR (July 30): Paramount Corp Bhd (KL:PARAMON) has no plan to acquire additional F&B businesses after the acquisition of a 28% stake in Singapore-listed Envictus International Holdings Ltd, said group chief executive officer Jeffrey Chew Sun Teong.

The property developer will instead focus on expanding Envictus’ operations—the operator of Texas Chicken and San Francisco Coffee in Malaysia—said Chew at a media briefing following the acquisition announcement.

Paramount is acquiring the 28% stake in Envictus for S$38.33 million (RM126.14 million) from JAG Capital Holdings Sdn Bhd. The deal is not subject to shareholders’ approval and is expected to be completed by Aug 7.

“This is a strategic growth opportunity for us. Property will remain our core business, contributing around 70% to group earnings,” said Chew.

Over the next five years, the group intends to grow the number of Texas Chicken outlets in Malaysia from 100 to 200, while also implementing a turnaround plan for the loss-making San Francisco Coffee.

Envictus reported a PAT of RM16.1 million for the first half of 2025, after posting RM50.6 million in PAT for the full year of 2024.

Prior to that, it had been loss-making for three consecutive years — recording net losses of RM32.9 million in 2023, RM6.4 million in 2022 and RM48.4 million in 2021—due to high costs and the Covid-19 pandemic. The group has not paid out dividends since 2014.

Paramount already has a small presence in the F&B space through two restaurants in Kuala Lumpur—Dewakan, which boasts two Michelin stars and a Michelin Green Star, and the newly established Bidou.

Whether the Envictus stake will be a long-term investment for Paramount remains subject to market conditions, Chew said.

“At four times price-to-earnings, the valuation is much lower than other comparable deals, such as Oriental Kopi which was valued at 28 times. So, this represents a good entry point. 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,” he added.

Shares of Paramount slipped one sen to RM1.09 on Wednesday, giving it a market capitalisation of RM678.82 million.

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