Classita shares jump on NexG's 32.61% stake acquisition news
The counter jumped 18.75%, or 1.5 sen, to 9.5 sen at 9.41 am, making it the most actively traded stock on Bursa Malaysia with 37.91 million shares changing hands. Year-to-date, it has surged more than 58%.
NexG, formerly known as Datasonic Group Bhd , is purchasing a 32.61% equity interest and 414.31 million warrants in Classita for a total cash consideration of RM76.78mil.
The move will make NexG the largest shareholder of Classita, with the company calling the acquisition a strategic opportunity to expand into the property and construction sector.
Classita and its subsidiaries are principally engaged in the manufacturing and sales of undergarments, property development and construction as well as direct selling and retailing of its in-house brands.
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Malaysian Reserve
2 days ago
- Malaysian Reserve
Hong Seng cites long gestation period, impairment in Classita stake sale
HONG SENG Consolidated Bhd has told Bursa Malaysia that its decision to dispose of its 32.61% stake in Classita Holdings Bhd, just two years after buying in, was driven by the longer gestation period needed for the property development and construction projects, alongside the desire to realise immediate cash proceeds and redeploy funds into existing and new businesses. The company was responding to a Bursa query regarding the disposal, which comes after Hong Seng's July 14 and July 23, 2023 announcements of the acquisition, then touted as having 'promising potential in, among others, the undergarments manufacturing and property development and construction businesses.' For the audited period ended June 30, 2024, Classita posted a net loss of RM3.02 million, of which Hong Seng's share was RM763,000. Net assets stood at RM189.28 million, with Hong Seng's portion amounting to RM62.26 million. For the nine months to March 31, 2025, Classita recorded a net profit of RM676,000. Segmental revenue for the group fell from RM75.83 million in the 15-month period to June 30, 2022, to RM50.49 million in FY2024, due mainly to a slump in manufacturing sales and direct retail. Manufacturing revenue slid from RM70.46 million to RM45.77 million over the period, hurt by shifting consumer preferences, heightened competition from fast fashion and direct-to-consumer brands, and higher shipment costs from a shift to air freight to meet delivery schedules. Direct selling and retail revenue plunged from RM5.3 million to just RM18,230 over the same period, as Classita pivoted away from in-house brands towards other segments. The property development and construction segment, meanwhile, swung from nil revenue in FY2023 – due to the reversal of prior years' sales after property buyers failed to secure financing – to RM4.65 million in FY2024, but still posted a loss. In the nine months to March 31, 2025, Classita's revenue improved by RM8.96 million year-on-year, thanks to higher manufacturing export sales to Germany, Turkey and the US, as well as slightly higher property sales. Hong Seng said: 'While the prospects of Classita's businesses remain, Hong Seng has recognised a partial impairment of the investment based on a value-in-use calculation… considering the longer gestation periods required for the property development and construction projects to materialise.' The impairment of RM34.52 million was derived under MFRS 136, using a five-year cash flow projection for the manufacturing segment only, discounted at 8.16%. The property and construction segments were excluded due to the inability to reliably estimate near-term cash flows. 'Retaining the investment would require a longer timeframe before the Group could recoup the investment and generate returns, with such returns being subject to various market and business risks and uncertainties,' Hong Seng said. 'The disposal represents a more favourable option to divest, realise immediate cash proceeds, and sidestep potential risks,' it added. Proceeds from the disposal will be channelled into Hong Seng's existing businesses, future expansions and prospective ventures. — TMR
Free Malaysia Today
3 days ago
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Investors hammer NexG over Classita acquisition
BIMB Securities has downgraded NexG to a 'sell' from 'hold' after its acquisition of a minority stake in Classita Holdings Bhd. PETALING JAYA : NexG Bhd plummeted 31% today after investors gave the thumbs down to its acquisition of a minority stake in Classita Holdings Bhd, an undergarments manufacturer seeking to reinvent itself as a property developer. Formerly known as Datasonic Group Bhd, the stock tumbled as much as 31.5% or 17 sen to its intraday low of 37 sen. This was its steepest fall in a single day since October 2018. The counter ended the day half-a-sen higher at 37.5 sen, down 29.9%, valuing the security-based ICT solutions provider at RM1.24 billion. Bursa Malaysia also suspended short selling of the counter for the day. It was the most actively traded stock on the bourse with 188 million shares changing hands. NexG announced last Friday it had acquired a 32.61% equity stake and another 414.31 million warrants in Classita for a total of RM76.78 million. If it exercises all the warrants – and no one else does – its stake could rise to 49.6%. The company bought 402.06 million Classita shares from Hong Seng Consolidated Bhd at 15 sen each – 87.5% above the last traded price of eight sen. NexG said it will fund the purchase with RM40 million in short-term borrowings, and RM36.78 million in internal funds. Last month, NexG was granted a six-month contract extension by the home affairs ministry to continue supplying passport documents and polycarbonate biodata pages to the immigration department. This is the fifth extension granted since the original contract expired in November 2021. NexG said the extension was for the period from Dec 1, 2025, to May 31, 2026. From lingerie to property Perak-based Classita, formerly Caely Holdings Bhd, is known for manufacturing lingerie and undergarments but has signalled its intent to diversify into the property and construction sectors. The company is poised for another name change after it announced today it plans to change its name to NexG Bina Bhd after NexG became its largest shareholder. It also appointed former inspector-general of police Razarudin Husain as its new independent, non-executive chairman with immediate effect. NexG said its interest in Classita is mainly for its property and construction business, including a CIDB G7-certified unit and ongoing projects. It also sees Classita's land bank and strong cash position as key advantages. Meanwhile, BIMB Securities has downgraded the stock to a 'sell' from 'hold'. The research house questioned whether NexG's move is a 'strategic diversification or distraction' from its core technology and identity business. It noted that 90% of Classita's revenue comes from undergarments manufacturing while its property push has yet to generate meaningful earnings. 'Entering a sector with a different DNA – cyclical, capital-intensive, and operationally complex – makes flawless execution more critical,' it said. It cautioned that NexG must be 'more proactive and transparent' on integration and capital allocation to assure investors. Classita's shares rose 12.5% or one sen to nine sen today, valuing the company at RM110.95 million.
Sinar Daily
6 days ago
- Sinar Daily
Ex-IGP Razarudin appointed Classita's non-executive chairman
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