KUALA LUMPUR: Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB) lost RM43.9 million from the sale of their minority investments in Malaysian online fashion retailer Fashion Valet Sdn. Bhd.
This was revealed during a written reply by the Ministry of Finance to a query published on the parliament website Monday.
In 2018, Khazanah invested RM27 million and PNB RM20 million for minority stakes in Fashion Valet.
MOF said the COVID-19 pandemic severely impacted Fashion Valet's business, leading to a significant need for new capital to continue operations.
By the end of 2023, a Bumiputera company, NXBT Partners, offered to acquire the existing shareholdings of Khazanah and PNB in Fashion Valet and inject the necessary capital into the company.
As a result, all shareholders agreed to accept the offer.
MOF said the sale represents a responsible exit for Khazanah and PNB from Fashion Valet to a strategic investor who could continue to assist Fashion Valet in addressing its financing needs holistically and reviving its business in a challenging industry environment.
"Khazanah and PNB received RM3.1 million from the sale of the shares. The loss from the sale of Fashion Valet shares was minimal compared to the overall revenue generated by Khazanah and PNB in the relevant year," MOF said.
In September 2024, Khazanah said its RM27 million investment in FashionValet (FV) in 2018 reflects its commitment to support local founders and startup ecosystem.
Meanwhile, PNB's investment was to support the rapidly growing Bumiputera digital retail company to become a regional retail platform for Malaysian brands.
The investments from Khazanah and PNB were channeled into Fashion Valet to support the company's growth plans.