KUALA LUMPUR (June 13): InNature Bhd is disposing of its entire 2.6 million shares and 5.2 million redeemable preference shares in its wholly owned subsidiary Ola Beleza Sdn Bhd to Natura Cosmetics Asia Pacific Pte Ltd (Natura AP) for RM2.04 million cash.
Ola Beleza is engaged in the distribution and commercialisation of Natura products in Malaysia.
In a bourse filing on Monday (June 13), InNature — the Body Shop and Natura brand products distributor — said it has entered into a share purchase agreement with Natura AP — an indirect subsidiary of multinational cosmetics and personal care corporation Natura & Co — for the disposal.
InNature noted that the RM2.04 million disposal sum was arrived after taking into account the net assets of Ola Beleza as at Aug 31, 2021. The latter’s net assets amounted to RM2.21 million as at end-December 2021.
“The consideration is to be satisfied in cash and paid in two tranches, where the final tranche will be subject to adjustment based on net assets of Ola Beleza upon completion of the disposal.
“The group intends to use the consideration received for its working capital,” it added.
In a separate statement, InNature group managing director Datin Mina Cheah–Foong said the disposal was a mutual decision between InNature and Natura & Co given the evolving operating environment post-pandemic.
“Following the completion of the disposal, Natura & Co will take over the Natura business in Malaysia, whereas InNature will focus on growing further our core business in all our markets.
“We appreciate the partnership with Natura & Co since 2019 in bringing the brand to Malaysia. In the meantime, we will work with Natura & Co for a smooth transition of the Natura business in Malaysia,” she added.
The conditions precedent include the procurement of approval from the Ministry of Domestic Trade and Consumer Affairs on the change in shareholding, change in directors, and change in office premises of Ola Beleza.
The group said the disposal’s completion is conditional upon fulfilling the aforementioned conditions precedent within three months from June 11.
“The group would expect to record a no gain/no loss on disposal, since the consideration will be adjusted to the net assets of Ola Beleza upon completion of the disposal,” InNature added.
Shares in InNature ended three sen or 5.71% lower at 49.5 sen, giving the group a market capitalisation of RM346.11 million.
