PETALING JAYA: Loss-making Pan Malaysia Corp Bhd
(PMC) is exiting its investment in a popular confectionery maker and will dispose of all related trade marks, including chocolate brands like Crispy and Tango.
Both deals will generate cash proceeds of RM15mil in total that would be redeployed for PMC’s working capital and future investments.
PMC, linked to tycoon Tan Sri Khoo Kay Peng of MUI Group, told the bourse it is selling its “passive investment” of a 15.15% stake in Indulgence World Sdn Bhd to Wah Kong Corp Sdn Bhd for RM8mil.
The stake was sold at a price-to-earnings ratio of 8.5 times.
Wah Kong Corp already owns 68.52% of Indulgence World, which made a pre-tax profit of RM6.3mil in the financial year of 2025.
Wah Kong is owned by the Choy family, with one of the family members and director of Wah Kong being Choy Peng Yew - the chief executive officer of Creador-backed PetWorld.
Indulgence World’s subsidiaries, Network Foods Industries Sdn Bhd (NFISB) and Network Foods (Malaysia) Sdn Bhd, are involved in the manufacturing, export, marketing and distribution of chocolate and confectionery.
In addition to the sale of Indulgence World, PMC via a subsidiary has entered into an assignment agreement with NFISB to dispose of the trademarks, involving various brands, such as Crispy, Tango, Maxcrunch, Tudor Gold and Kiddies.
PMC will generate RM7mil from the assignment of trademarks.
PMC said the proposed equity interest sale in Indulgence World will help strengthen its cash flow position and provide financial flexibility to support its working capital requirement.
Meanwhile, the RM7mil from the trademark assignment will allow PMC to “realise the economic value of these intangible assets while freeing up capital for redeployment towards more strategic purposes”.
“Barring any unforeseen circumstances, the proposals are expected to be completed in the third quarter of 2026,” PMC said in a filing.
The PMC stock has tumbled by more than 50% in the past one year, dragging its market capitalisation down to just RM53mil.
