KUALA LUMPUR: Magma Group Bhd
, via its wholly-owned subsidiary Magma Chain Management Sdn Bhd (MCM), is setting up a joint venture company (JVC) with beverage retailer Chagee (M) Sdn Bhd to operate and grow the Chagee business in Malaysia.
In a statement, the hospitality group said the JVC, Chagee Magma Sdn Bhd, will be the primary vehicle for developing branded retail outlets and other commercial initiatives within the premium tea and beverage segment.
The JVC aims to establish up to 300 directly managed Chagee outlets in Malaysia within three years, to be progressively rolled out in phases.
Under the terms of the collaboration, Chagee will have a 60% interest in the JVC, while MCM will own the remaining 40%.
"This joint venture reflects Magma Group's strategic vision to diversify into high-growth lifestyle and consumer segments.
"The partnership leverages Chagee’s proven operational excellence and strong consumer appeal, recently reinforced by its successful listing on Nasdaq, alongside Magma’s deep expertise in local market development and execution.
"Together, we see substantial opportunities to capture significant value within Malaysia’s expanding premium tea market," said Magma group managing director and group CEO Datuk Sri Thomas Liang Chee Fong.
