KUALA LUMPUR (June 21): Fashion retailer Bonia Corp Bhd is disposing of its 30% stake in wholly-owned SBG Holdings Bhd for RM17.6 million cash, to a company owned by its executive director and shareholder Datuk Seri Chiang Fong Tat, to fund its working capital.

Bonia inked a conditional share sale agreement with Chiang's private vehicle Remarkable Success Sdn Bhd (RSSB) on Wednesday (June 21) to sell 60.3 million shares in SBG, which is involved in the manufacturing and retailing of bags, footwear and accessories under the Sembonia brand.

Fong Tat, the second of three sons of Bonia founder Chiang Sang Sem, currently holds a direct 0.568% stake and an indirect 0.013% stake in Bonia. Sang Sem controls 73.035% in Bonia, of which 10.941% are directly held.

In a bourse filing, Bonia said the disposal consideration was determined on the basis of "willing buyer, willing seller" after arm's length negotiations, by referencing SBG's unaudited net assets of RM58.66 million as at April 30.

For the third quarter ended March 31 (3QFY2023), Bonia’s net profit decreased to RM10.33 million from RM12.5 million, despite higher revenue, no thanks to higher marketing expenses, staff costs and rental expenses. Revenue rose to RM95.13 million from RM86.82 million, mainly driven by the opening up of more boutiques.

On Wednesday, shares of Bonia finished five sen or 2.56% lower at RM1.90, giving it a market capitalisation of RM382.99 million.