MOF: Khazanah & PNB Lost Over RM43M After Selling Their Stake In FashionValet For RM3.1M
According to the Finance Ministry, the decision marked "a responsible exit" for Khazanah and PNB.
By Sadho Ram — 30 Oct 2024, 02:55 PM
Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB) suffered a collective loss of RM43.9 million after selling their minority stakes in FashionValet Sdn Bhd, a Bumiputera digital retail company, for just RM3.1 million, the Finance Ministry (MOF) disclosed earlier this week
According to MOF, Khazanah and PNB divested their investments at the end of 2023 amid financial challenges faced by FashionValet due to the COVID-19 pandemic, reported the New Straits Times.
In 2018, Khazanah invested RM27 million and PNB RM20 million into FashionValet, holding minority stakes in the company. However, the pandemic significantly impacted the retailer's performance, pushing the company to seek a substantial capital infusion to continue operations.
MOF said it was "a responsible exit" for Khazanah and PNB
MOF stated that NXBT Partners, a Bumiputera-owned investment firm led by TIME dotCom Bhd's CEO Afzal Abdul Rahim, offered to acquire Khazanah and PNB's stakes, alongside an agreement to provide FashionValet with the capital necessary to sustain its business in a competitive market.
"All shareholders agreed to accept the offer," MOF said in its written reply on parliament's website on Monday, 28 October, adding that this decision marked "a responsible exit" for Khazanah and PNB, transferring FashionValet to a strategic investor better positioned to meet the company's financial needs.
"Khazanah and PNB received RM3.1 million from the sale of the shares.
"The loss from the sale of FashionValet shares was minimal compared to the overall revenue generated by Khazanah and PNB in the relevant year," the ministry explained.
In September, Khazanah had clarified that its RM27 million investment in FashionValet reflected its commitment to supporting local founders and the growth of Malaysia's startup ecosystem.
For PNB, the investment aimed to back a fast-growing Bumiputera digital retail company, fostering FashionValet's potential to develop as a regional platform for Malaysian brands.
NXBT now holds a 51.25% stake in FashionValet, according to records from the Companies Commission of Malaysia. Co-founder Datuk Fadzarudin Shah Anuar, husband of fashion influencer Datin Vivy Yusof, retains a 17.65% share, while MyEG Capital Sdn Bhd holds a 5.78% stake.
As the sale and valuation losses draw public attention, MOF has reiterated the strategic intent behind the exit, positioning NXBT as capable of reviving FashionValet and securing a sustainable future for the platform.
