Magma Group To Acquire Christine’s Bakery For RM3.2 Million

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Magma Group Bhd has agreed to buy the company behind Christine’s Bakery through a joint venture with Evermont Holdings, which is co-owned by Datuk Seri Lee Chong Wei.

In a Bursa Malaysia filing on Thursday (8 October), Magma said its 80%-owned subsidiary, Magma Food Ventures, signed a conditional share sale agreement to acquire all of Magma Christine for RM2.8 million in cash.

Evermont holds the remaining 20% of Magma Food Ventures, which was incorporated on 30 September.

Lee and Yap Kiam Bun each own 50% of Evermont.

The filing describes Lee as a major shareholder of Magma.

What Is Being Bought

Magma Christine was incorporated on 8 Sep and will hold two companies, CL Bakery and Kitchen CL.

CL Bakery operates the Christine’s bakery-café brand and has 10 outlets in the Klang Valley, according to the filing. It was incorporated in 2017.

Kitchen CL handles central kitchen and food preparation activities for the brand.

Of the RM2.8 million, RM2.24 million will be paid to the vendors at completion. The remaining RM0.56 million will be held by the vendors’ solicitors for six months.

Magma will fund RM2.24 million from internally generated funds. Evermont will fund RM0.56 million.

A separate RM400,000 owed by CL Bakery to the vendors is not part of the price. CL Bakery is to repay it within seven business days after completion.

Completion is subject to conditions, including due diligence and the settlement of a potential claim linked to CL Bakery’s sale of its Bandar Sunway factory. Magma expects completion by the fourth quarter of 2026.

Loss-Making Operations

CL Bakery recorded revenue of RM27.54 million in the financial year ended 30 June 2025, down from RM30.95 million a year earlier. Its loss after tax widened to RM1.77 million from RM1.12 million.

In the financial year ended 30 June 2023, it made a profit after tax of RM970,000.

Kitchen CL’s revenue fell to RM193,000 in FY2025 from RM3.84 million, with a loss of RM246,000.

Magma said the price is well below the roughly RM9.45 million the founders put into the two companies. It described the deal as an opportunistic investment in a brand with an existing outlet network.

Its turnaround plan covers supplier cost renegotiation, manpower optimisation, outlet rationalisation, selective refurbishment, a brand refresh and halal certification initiatives. Evermont will provide marketing and promotional direction.

Lee’s business interests have been covered in Chinese-language media since his playing days.

Profiles published around 2016 reported that he had a property development in Kuala Lumpur, and a sports complex with dining, accommodation and training facilities. They also mentioned a badminton academy in Ipoh. A 2018 profile noted that the biographical film about his life was funded by his family.

He has also been brand ambassador for tea chain Chagee Malaysia since 2022.

Magma’s own businesses include hospitality management, property development and lifestyle retail, according to the filing.

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