KUALA LUMPUR (March 21): Luxury retailer Bonia Corporation Bhd (KL:BONIA) said it is raising its stakes in a property investment subsidiary and an associate operating seafood restaurant for a combined RM13.16 million.

Bonia will acquire an additional 25% stake in Casa Bologna Sdn Bhd for RM5.66 million, bringing its ownership to 90% in the subsidiary that owns two plots of prime land in Bukit Bintang area, the company said in an exchange filing on Friday.

“The acquisition is a good opportunity to potentially enjoy higher capital appreciation and rental income,” Bonia said.

Bonia also separately said it plans to pay RM7.5 million for 60% share in One Seafood F&B Sdn Bhd that operates a restaurant in Bukit Bintang. If the deal goes though, Bonia will control 90% of One Seafood. An existing shareholder, Marcus Lee Andrew, will continue to hold the remaining 10%.

The proposed acquisition of One Seafood is driven by the “strategic advantages of enhanced control and financial consolidation”, Bonia said. The company could also benefit from growing activities in the surrounding areas, which will boost traffic and business for the restaurant, it added.

One Seafood also currently holds a 10% stake in Casa Bologna.

Both acquisitions, to be funded by internally generated funds, are expected to be completed by the third quarter of this year, Bonia noted.

Shares of Bonia were down four sen or 2.9% to RM1.35 at Friday's midday break, giving it a market capitalisation of RM272.12 million. Year to date, the stock has gained 3.1%.

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