Kuala Lumpur — Malaysian-listed Magma Group Bhd (MAGMA, 7243, Main Market Consumer Products and Services) is expanding into a new business segment by partnering with Evermont Holdings, in which Malaysian badminton legend Datuk Seri Lee Chong Wei holds a stake. Through their joint venture, the group will acquire 100% of Magma Christine for RM2.8 million, marking its entry into the bakery-café and related food businesses.
In a statement, Magma Group said it established a joint venture company, Magma Food Ventures, with Evermont Holdings on September 30. Magma Group holds an 80% stake in the joint venture, while Evermont Holdings owns the remaining 20%. Lee Chong Wei holds a 50% stake in Evermont Holdings.
On October 8, Magma Food Ventures signed a share sale agreement with the shareholders of Magma Christine to acquire the company’s entire equity interest for RM2.8 million.
Acquisition to Consolidate Christine’s Bakery-Café Business
Magma Christine was incorporated on September 8 this year. Under the agreement, the shareholdings of two companies, CL Bakery and Kitchen CL, will be transferred under Magma Christine to form a consolidated business group.
CL Bakery operates the Christine’s bakery-café brand, while Kitchen CL is involved in kitchen operations, central kitchen facilities, food preparation and support activities related to Christine’s business.
According to Christine’s official website, the brand was established in 2017 and currently operates seven outlets in Malaysia, all located in the Klang Valley.
Through the acquisition, Magma Group aims to establish a presence in the bakery-café and food business while consolidating the brand’s retail outlets with its supporting kitchen operations.
Magma Group to Contribute RM2.24 Million, Lee Chong Wei-Linked Firm RM560,000
According to Magma Group, the acquisition of Magma Christine by Magma Food Ventures is expected to be completed in the fourth quarter of 2026.
Magma Group and Evermont Holdings will contribute RM2.24 million and RM560,000 respectively, in line with their 80% and 20% shareholdings in the joint venture.
In addition, Magma Christine will recognise RM400,000 in outstanding liabilities owed by CL Bakery.
The transaction will allow Magma Group to expand into the bakery-café and related food sectors, with Christine’s existing seven outlets and central kitchen support system serving as the foundation for the consolidated business.
Market attention will now turn to the completion of the acquisition, the integration of the businesses and how the group plans to develop the brand and generate additional revenue from its new venture.