FJ Benjamin to raise S$3m in placement deal with Far East Organization unit

RETAIL group FJ Benjamin Holdings (FJB) on Tuesday (Dec 21) said it will raise S$3 million from a Far East Organization unit for expansion.

Western Properties, a member of the Far East Organization group of companies, has agreed to subscribe to 120 million new FJB shares at S$0.025 each. FJB will also explore strategic opportunities to collaborate with Far East Organization for new businesses as well as within its present brand portfolio, it said in a bourse filing.

"After nearly 2 years of disruptions caused by Covid-19 ... we expect to see an increase in traffic to the malls, and are positioning ourselves for expansion," chief executive Nash Benjamin said.

The placement, which is subject to approval from shareholders, will raise Western Properties' interest to 16.7 per cent from 7.4 per cent. This makes it FJB's second-largest shareholder after the Benjamin family. Western Properties became a substantial shareholder of FJB earlier this year following the conversion of warrants into shares.

The issue price was negotiated on a willing-buyer, willing-seller basis after arm's length negotiations, the company noted.

FJB is a distributor and retailer of fashion, lifestyle and health products in Singapore, Malaysia and Indonesia. Its brands include Guess, La Senza, Casio, and Rebecca Minkoff.

Shares of FJB closed at S$0.021 on Tuesday before the announcement, down S$0.001 or 4.6 per cent.