Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 7): Bonia Corp Bhd is contemplating the demerger of its wholly-owned unit CRG Inc Sdn Bhd and the latter's subsidiaries (collectively the CRG Group), which it proposed to subsequently be listed on the LEAP Market of Bursa Malaysia.

CRG's subsidiaries are involved in the designing, manufacturing, promoting, marketing, distribution and retailing of Carlo Rino and CR2 branded fashion products.

According to its bourse filing today, the exercise comprises the proposed conversion of CRG into a public company, the capitalisation of part of the retained earnings of CRG into new ordinary shares, and the subdivision of existing ordinary shares in CRG.

Bonia also proposed to distribute its entire shareholding in CRG by way of a dividend-in-specie distribution, on a pro-rata basis, to its shareholders.

"Based on the latest audited consolidated financial statements of Bonia and its subsidiaries and CRG group for the financial year ended June 30, 2017, the contributions of CRG group to the revenue, profit before tax and net assets of Bonia group were approximately 15.5%, 8.8% and 15% respectively," it said.

It said the proposals are expected to reward its existing shareholders and enable CRG — which has a distinct market segment and business strategies as compared to the rest of the Bonia Group — to gain recognition and corporate stature through its own listing status.

The move will also provide more fund-raising options for CRG to fund its expansion.

Further announcement in relation to the proposals will be made in due course, once the details have been finalised, Bonia added.

Bonia shares closed unchanged at 47.5 sen today, giving it a market capitalisation of RM382.68 million. In the past 12 months, the stock has retreated 18.87%.

 

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