Berjaya Food Berhad has officially pulled the plug on its “Paris Baguette” bakery cafe venture in Malaysia announcing that it entered into a Share Purchase Agreement (SPA) to dispose of its entire 50% equity interest in Berjaya Paris Baguette Sdn Bhd (BPB) to its joint venture partner, Paris Baguette Singapore Pte Ltd (PBS), for a nominal cash consideration of RM1.00.
The transaction was completed yesterday, June 30, 2026, resulting in BPB ceasing to be a joint venture company under the BFood umbrella.
BPB was incorporated in July 2022 as a 50:50 joint venture between BFood and PBS, the regional master franchisor of the popular South Korean bakery brand. The entity launched its operations in Malaysia in January 2023 with an issued share capital of RM40 million.
However, the brand struggled to find financial footing. As of December 31, 2025, BPB recorded a heavy unaudited loss after tax of RM67.09 million and plunged into a net liabilities position of RM33.41 million.
BFood revealed that its original cost of investment for the 50% stake amounted to RM20.00 million, all of which has already been fully impaired in its financial accounts. The nominal RM1.00 disposal price was agreed upon after factoring in BPB’s severe net liabilities position.
While the sale price was nominal, the exit required BFood to clean up its portion of the joint venture’s debts.
As a condition of the SPA, BFood was obligated to settle certain BPB liabilities before the transfer of shares. This included hire purchase liabilities owed to Prime Credit Leasing Berhad—a subsidiary of BFood’s ultimate holding company, Berjaya Corporation Berhad—and other payment obligations.
These liabilities, totaling RM3.91 million, were fully satisfied and fulfilled by BFood on the completion date. The group confirmed that no further obligations will be assumed from the disposal.
PBS, the buyer, is a wholly-owned subsidiary of South Korea’s Sangmidang Holding Co., Ltd. Following this transaction, PBS will take full control of the Malaysian operations.
Commenting on the rationale behind the exit, BFood stated that the divestment was a strategic necessity to cut further bleeding from the underperforming bakery chain.
“The disposal forms part of the divestment plan of BFood 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 brand name in the country,” BFood stated.
“The disposal will eliminate the group’s further exposure to BPB’s ongoing losses, enabling BFood to better allocate its resources and management focus towards its core businesses and other growth opportunities.”
