Mary Chia Holdings, renowned for its beauty services business, has been acquired by Suki Sushi for SG$11 million. This will see the buying out of founder Mary Chia’s (pictured) 60.98% stake in the company, and bring Suki Sushi’s stake to 80.97%.
According to a SGX filing, Mary Chia Holdings was operating within challenging market conditions. In the year ending 31 March 2017, the group had incurred losses of approximately SG$5.7 million. It was also in a negative working capital position of SG$10.3 million as of 31 March 2017.
The move will see Chia resigning from her position as executive chairman of the company with immediate effect, while being redesignated as non-executive chairman of the group. Before that, she was executive chairman since the company’s listing in 2009.
Following the acquisition, Lee Boon Leng and Ho Yow Ping (Chia’s daughter) will become the major stakeholders of the company. Currently, Ho is the CEO of Mary Chia Holdings, while Lee is the sole shareholder of JL Asia Resources, a company specialising in real estate project management and hotel management.
The acquisition will allow them to leverage on the industry network, experience, expertise and resources of Lee to seek new opportunities for Mary Chia. Moving forward, the new major stakeholders also intend to pursue a diversification strategy for Mary Chia Holdings.
The business climate for the beauty services industry has grown more competitive over the years, with competitors such as NOVU (formerly PPP Laser Clinic) and Bella Marie France (Formerly Marie France Bodyline) rebranding and making plans for expansion in the region.