“All the investment proceeds went into Fashion Valet to fund its growth plans and not to any of its existing shareholders, which included the founding entrepreneurs,” PNB said in a statement.
“It is important to emphasise that the investment was made using PNB’s proprietary fund and not the unit trust funds under Amanah Saham Nasional Bhd (ASNB) subscribed by the public,” it added.
The PNB statement came shortly after national sovereign fund Khazanah Nasional said the divestment of its Fashion Valet investment was “a responsible exit“.
The asset manager said its 2018 investment in Fashion Valet, a startup online fashion company, followed a detailed evaluation and due diligence process. At the time, the company had a projected annual revenue growth rate of 60% forecast for the following three years.
PNB said the purchase of its stake in Fashion Valet was in line with Putrajaya’s call for government-linked investment companies to support high-potential Bumiputera firms involved in the new economy, in this case, the digital economy.
Fashion Valet encountered difficulties following the outbreak of Covid-19 and the ensuing lockdowns, and required capital injection urgently, but PNB and other existing investors were not willing to do so due to the risks associated.
It was then that NXBT Partners offered to inject new capital though at a much lower valuation, and to take over the company. NXBT Partners is an investment holding company controlled by Afzal Abdul Rahim, the CEO of TIME dotCom Bhd.
Khazanah Nasional is believed to hold a 32.34% stake in TIME dotCom.
“Given PNB’s small stake and that the investment had been substantially provided, it was decided to accept the purchase offer to allow Fashion Valet to move forward,” said PNB.
Despite the loss of its investment, PNB said this should be viewed in light of the RM337 billion in investment assets it managed, as well as the RM16.4 billion in investment income generated in the 2023 financial year.
Earlier today, Fashion Valet’s founders, local fashion icon Vivy Yusof and her husband Fadzarudin Anuar, said they would be stepping down from their management posts in the company to take full responsibility for Khazanah and PNB’s losses.