KUALA LUMPUR (Sept 20): Pan Malaysia Corp Bhd is partnering with a Singaporean artisan baker and food store, Baker & Cook Pte Ltd, to diversify its business to include food and beverage (F&B) retail outlets.

Pan Malaysia said its wholly-owned unit Megafort Sdn Bhd entered into an agreement with Baker & Cook today to form a joint-venture (JV) company on a 50:50 basis.

The JV company will carry on the franchise business of retail F&B outlet operated and conducted under the trade names of "Baker & Cook" and "Plank Sourdough Pizza".

Baker & Cook and Megafort will inject RM750,000 to subscribe for 50,000 shares each in the JV company, said Pan Malaysia in a stock exchange filing.

While Baker & Cook will be managing its day-to-day operations, Megafort will be handling concession and sub-franchisee agreements for the business to be operated at Metrojaya Mid Valley Megamall and Corus Hotel Kuala Lumpur.

"The group (Pan Malaysia) intends to diversify its business profile and income stream, and it believes that the JV is expected to contribute positively to the earnings of the group in the future," read the filing.

Pan Malaysia is currently involved in the provision of management services and the manufacturing, marketing and distribution of cocoa-based and other food and confectionery products. It has a market capitalisation of RM109.8 million, based on its closing price today of 15.5 sen.

Baker & Cook, meanwhile, is present in three other markets, namely the Philippines, Saudi Arabia, and United Arab Emirates, besides its home market Singapore, and now Malaysia.