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Berjaya Food Bhd has sold its stake in Berjaya Paris Baguette Sdn Bhd (BPB) to its joint venture partner, Paris Baguette Singapore Pte Ltd, for a nominal cash consideration of RM1
According to a Bursa Malaysia filing yesterday, 1 July, BPB disposed of its 50% stake in the venture to Paris Baguette Singapore via a share purchase agreement, involving the sale of 20 million ordinary shares for RM1.
The deal, which was completed in 30 June, also saw BPB settling RM3.91 million in liabilities owed by Paris Baguette Singapore, including hire purchase obligations owed to Prime Credit Leasing Bhd, a subsidiary of Berjaya Corp Bhd, as well as other payment obligations.
Berjaya Food said the stake was sold free of any encumbrances, with all attached rights transferred to Paris Baguette Singapore.
The company added that it would not assume any additional liabilities from the disposal, aside from those already disclosed.
"The cash consideration of RM1 for the disposal was arrived at after taking into consideration the net liabilities position of Paris Baguette Singapore's as well as Berjaya Food's obligation to assume and settle the liabilities on the completion date," it said.
Berjaya Food invested RM20 million in the venture on 21 July 2022, but the entire investment has since been impaired, according to the company
"As at 31 December 2025, BPB recorded an unaudited loss after tax of RM67.09 million and net liabilities of RM33.41 million.
"The disposal forms part of the divestment plan of Berjaya Food to exit from the Paris Baguette chain of bakery and retail store business in Malaysia which has been incurring losses since the launch of the said brand name in Malaysia.
"The disposal will eliminate the group's further exposure to BPB's ongoing losses, enabling Berjaya Food to better allocate its resources and management focus towards its core businesses and other growth opportunities," the company said.
The filing also noted that Paris Baguette Singapore is a wholly-owned subsidiary of Sangmidang Holding Co Ltd, a company incorporated in South Korea.
Berjaya Food said the disposal is not expected to have a material impact on its earnings, net assets, or gearing for the financial year ended in June.
It also said the transaction will not affect its issued share capital or the shareholdings of its substantial shareholders.
