BEST World International said on Thursday that the company and its founders - Dora Hoan and Doreen Tan - have on May 3 started defamation proceedings against Bonitas Research and its founder in the Singapore High Court.
The move is in response to a 28-page report published by Bonitas in April questioning the authenticity and legality of the premium skincare firm's profits. In a regulatory filing posted at 1.42am, Best World said the report contains false and defamatory allegations “intended to undermine the reputations” of the group and its senior management, cause a loss of confidence in the group and inflict damage on the price of the company’s shares to “financially benefit Bonitas”.
It said Bonitas is a professional short seller and has openly stated in the report that it would profit from the decline in the company’s share price."The company strongly urges its shareholders and potential investors not to be deceived by the report, which has undermined confidence in the group and destroyed the value that the company has created for its shareholders over the years," Best World said.
Days after the report, the Singapore Exchange's regulatory arm ordered a review of Best World's China business to address all matters raised by Bonitas. Separately, SGX alsoOn Wednesday night, Best World posted afor the first quarter to S$10.3 million from S$5.8 million a year ago.