Ekuinas sells 20% stake in Alliance Cosmetics Group

Ekuiti Nasional Bhd (Ekuinas) has sold its 20% stake in Alliance Cosmetics Group (ACG) to private equity fund management firm Navis Capital Partners for MYR61.8m ($15.4m).

The divestment of the stake will enable ACG to boost its financial performance.

Ekuinas is the Malaysian Government-associated private equity fund management company.

ACG was Ekuinas’s first investment in the CPG sector.

Ekuinas chairman Raja Tan Sri Arshad Raja Tun Uda was quoted by Dealstreetasia.com as saying: “We are divesting the stake to our partner, Navis, who has the capacity and historical knowledge of ACG to continue nurturing the company to further strengthen its performance in the near future.

“Despite challenging market conditions throughout Ekuinas’ ownership, ACG has successfully expanded into Indonesia and Philippines. Its in-house brand Silkygirl also continues to be one of the leading mass market colour cosmetics and fragrance players in Malaysia, Singapore and Brunei, whilst its team endeavoured to develop new product lines.”

The divestment of the stake in ACG is the sixth sale by Ekuinas, which takes its total realised proceeds from the divestment to more than MYR1bn.

It made a partial sale of Icon Offshore Bhd.