Property developer Far East Organization has taken a further 9.3-per-cent stake in Singapore retail group FJ Benjamin Holdings.
The deal will raise $3 million through the placement of around 120 million new shares at a price of 2.5 cents each. The investment takes Far East’s stake in FJ Benjamin to 16.7 per cent, making it the company’s second-largest shareholder behind the Benjamin family.
The investment will provide additional working capital for the 63-year-old company, which distributes and retails lifestyle and health products in Singapore, Malaysia and Indonesia, under 20 brands, including Superdry, Guess, La Senza, Fauré le Page, Casio, Lancel, Rebecca Minkoff, Pretty Ballerinas, Airfree and Dr Barbara Sturm. It operates 158 stores.
“After nearly two years of disruptions caused by Covid-19, we are beginning to see a return in consumer spending as countries in Southeast Asia open their borders and ease social distancing measures,” said FJB CEO Nash Benjamin. “We expect to see an increase in traffic to the malls and are positioning ourselves for expansion.”
He added that the company will also explore strategic opportunities to collaborate with the Far East Organization for new businesses as well as within its present brand portfolio.
“This timely investment is clearly an expression of confidence in FJB’s prospects and we are grateful for their support.”
The deal remains subject to shareholder approval at an extraordinary meeting.
Far East Organization, Singapore’s largest private property developer, develops, owns and manages residential, hospitality, retail, commercial, healthcare and industrial properties.