KUALA LUMPUR: Just over a year after expanding its brand portfolio to include rights for Braun Büffel in the Asia-Pacific, homegrown fashion label Bonia Corp Bhd is taking a bigger step abroad by taking a 49% stake in the Germany-based leather goods maker in a deal worth €3.2 million (RM13.1 million).
In an announcement to Bursa Malaysia, Bonia said its 70%-owned subsidiary Jeco Pte Ltd has signed a sales and purchase agreement with Christiane Brunk for the purchase of a 49% equity stake in Braun Verwaltungs-GmbH and Braun GmbH & Co KG (Braun KG) for €980,000 cash.
Brunk, who is the great granddaughter of Braun Büffel founder Johann Braun, is the director and sole shareholder of the companies.
Jeco also entered into a loan receivable sale agreement with several parties to restructure the total debts of €3.15 million owed by Braun KG to Sparkasse Rhein-Nahe, which will be settled through a lump sum of €2.2 million.
Other parties in the loan agreement are Brunk, Braun Büffel Retail GmbH & Co KG, Braun Büffel Retail Management GmbH and Braun Büffel Suisse GmbH.
Jeco also entered into a trademark purchase and transfer agreement with Büffel Markenverwertungs GmbH & KG, Karl-Heinz Braun and Frau Liesel Braun for the purpose of acquiring the Braun Büffel trademark for €20,000 cash.
The entire deal will be funded by internally generated funds.
Essentially the agreements will allow Jeco, which is the brand representative and owns the trademark for Braun Büffel in Asia-Pacific up until June 30, 2034, an opportunity to work closer with Braun KG to help build the brand in Europe, Asia as well as other parts of the world, according to the announcement. Under the agreement, Jeco is now the rights owner of the Braun Büffel trademark in the UAE, the US and Canada.
“The company believes that with the long established brand of Braun Büffel, the Bonia group will be able to further grow its market share and recognition in the Asia-Pacific region and the rest of the world.
“The acquisition is expected to widen earnings base of the Bonia group and this will eventually enhance the company’s shareholders value,” said Bonia.
Bonia had acquired the stake in Jeco in late 2010 for S$28 million (RM68.3 million). Jeco is also the licensee for Pierre Cardin and Bruno Magli leather goods in Singapore and master licensee for Renoma in Singapore, Malaysia and Indonesia.
According to the announcement, Braun KG is a family-run business entity with a history that dates back to 1887. It also owns a production facility in Germany.
“Pursuant to the acquisition and as regards to the business of production and distribution of luxury leather goods under the trademark ‘Braun Büffel’ and other luxury goods, Braun KG and Jeco wish to split up the geographical markets and cooperate closely in the areas of the development of new markets, product design and sourcing, and to expand the business,” said Bonia.
While Braun KG will cater to markets in Europe, the former Soviet Union and Turkey for its leather goods, Jeco will distribute to the rest of world including markets such as India and Japan.
However, Jeco will have the right to produce and distribute any other luxury goods including watches, sunglasses and clothing under the Braun Büffel trademark to all countries worldwide.
Brunk will also be appointed agent to secure licence partners for the distribution of Braun Büffel goods in the world except Europe, countries of the former Soviet Union and Turkey.
Bonia ended at a 52-week high of RM2.13 with 267,700 shares traded yesterday.
This article appeared in The Edge Financial Daily, January 4, 2012.
In an announcement to Bursa Malaysia, Bonia said its 70%-owned subsidiary Jeco Pte Ltd has signed a sales and purchase agreement with Christiane Brunk for the purchase of a 49% equity stake in Braun Verwaltungs-GmbH and Braun GmbH & Co KG (Braun KG) for €980,000 cash.
Brunk, who is the great granddaughter of Braun Büffel founder Johann Braun, is the director and sole shareholder of the companies.
Jeco also entered into a loan receivable sale agreement with several parties to restructure the total debts of €3.15 million owed by Braun KG to Sparkasse Rhein-Nahe, which will be settled through a lump sum of €2.2 million.
Other parties in the loan agreement are Brunk, Braun Büffel Retail GmbH & Co KG, Braun Büffel Retail Management GmbH and Braun Büffel Suisse GmbH.
Jeco also entered into a trademark purchase and transfer agreement with Büffel Markenverwertungs GmbH & KG, Karl-Heinz Braun and Frau Liesel Braun for the purpose of acquiring the Braun Büffel trademark for €20,000 cash.
The entire deal will be funded by internally generated funds.
Essentially the agreements will allow Jeco, which is the brand representative and owns the trademark for Braun Büffel in Asia-Pacific up until June 30, 2034, an opportunity to work closer with Braun KG to help build the brand in Europe, Asia as well as other parts of the world, according to the announcement. Under the agreement, Jeco is now the rights owner of the Braun Büffel trademark in the UAE, the US and Canada.
“The company believes that with the long established brand of Braun Büffel, the Bonia group will be able to further grow its market share and recognition in the Asia-Pacific region and the rest of the world.
“The acquisition is expected to widen earnings base of the Bonia group and this will eventually enhance the company’s shareholders value,” said Bonia.
Bonia had acquired the stake in Jeco in late 2010 for S$28 million (RM68.3 million). Jeco is also the licensee for Pierre Cardin and Bruno Magli leather goods in Singapore and master licensee for Renoma in Singapore, Malaysia and Indonesia.
According to the announcement, Braun KG is a family-run business entity with a history that dates back to 1887. It also owns a production facility in Germany.
“Pursuant to the acquisition and as regards to the business of production and distribution of luxury leather goods under the trademark ‘Braun Büffel’ and other luxury goods, Braun KG and Jeco wish to split up the geographical markets and cooperate closely in the areas of the development of new markets, product design and sourcing, and to expand the business,” said Bonia.
While Braun KG will cater to markets in Europe, the former Soviet Union and Turkey for its leather goods, Jeco will distribute to the rest of world including markets such as India and Japan.
However, Jeco will have the right to produce and distribute any other luxury goods including watches, sunglasses and clothing under the Braun Büffel trademark to all countries worldwide.
Brunk will also be appointed agent to secure licence partners for the distribution of Braun Büffel goods in the world except Europe, countries of the former Soviet Union and Turkey.
Bonia ended at a 52-week high of RM2.13 with 267,700 shares traded yesterday.
This article appeared in The Edge Financial Daily, January 4, 2012.
