KUALA LUMPUR (July 1): Berjaya Food Bhd (KL:BJFOOD) has exited the loss-making Paris Baguette business in Malaysia, after selling its entire 50% stake in Berjaya Paris Baguette Sdn Bhd (BPB) to its joint venture partner — Paris Baguette Singapore Pte Ltd (PBS) — for a nominal RM1.
According to Berjaya Food’s bourse filing on Wednesday, the disposal, completed on June 30, resulted in PBS, the franchisor, taking full ownership of BPB, which has been operating the Paris Baguette bakery chain in Malaysia since January 2023.
As part of the transaction, Berjaya Food was required to settle RM3.91 million of BPB's liabilities, including hire purchase obligations owed to Prime Credit Leasing Bhd, a subsidiary of its ultimate holding company, Berjaya Corporation Bhd (KL:BJCORP), as well as other payment obligations. The liabilities were fully settled on the completion date.
Berjaya Food said the divestment forms part of its plan to exit the Paris Baguette business, which has been loss-making since its launch in Malaysia.
As at Dec 31, 2025, BPB had accumulated an unaudited loss after tax of RM67.09 million and recorded net liabilities of RM33.41 million.
Berjaya Food said the RM1 consideration reflected BPB's net liabilities position and its obligation to settle the outstanding liabilities.
Berjaya Food had invested RM20 million in the joint venture since its incorporation in July 2022, an amount it said had been fully impaired.
Following the disposal, BPB ceased to be a joint venture company of Berjaya Food, eliminating the group's exposure to BPB's continuing losses. Berjaya Food said this would also allow it to redirect resources and management focus towards its core businesses and other growth opportunities.
It added that the disposal would not have a material impact on its earnings, net assets or gearing for the financial year ended June 30, 2026 (FY2026).
Shares in Berjaya Food dipped 0.5 sen or 2.5% to close at 19.5 sen on Wednesday, valuing the company at RM416.18 million. Over the past one year, the stock has slumped over 30%.