KUALA LUMPUR: Integrated builders conglomerate Chin Hin Group Bhd has bought a 31.2% stake in Signature International Group Bhd, which is involved in kitchen and home furniture, for RM93.60mil due to the potential for future growth.
In a statement to Bursa Malaysia on Monday, Chin Hin said it had entered into a conditional share sale agreement with Tenyin Holding Sdn Bhd and Datuk Chooi Yoey Sun to acquire the stake, comprising 80 million shares. Chooi is the group executive director and major shareholder of Signature.
“The purchase consideration of RM1.17 per sale share represents an 18% premium to the five-day weighted average market price (WAMP) of Signature shares up to the last practical date of 99.18 sen.
Stock market data showed the 80 million shares were crossed at RM1.17 or seven sen above last Friday’s closing price. Its share price was up four sen to RM1.14.
Chin Hin said its subsidiaries are mainly involved in distribution of building materials and provision of logistic services; manufacturing and distribution of ready mixed concrete; and manufacturing and trading of precast concrete products, wire mesh, fire rated door, wooden door and modular building solutions.
“The acquisition is in line with the group’s objective of acquiring strategic stakes in companies with potential for future growth. The acquisition represents an opportunity for the group to expand its product range from building materials into quality kitchen, home and living solutions.
“Signature group’s products are not only supplied to property development projects but also directly to consumers through its various retail outlets, which will enable the group to tap into the business-to-consumer (B2C) segment, ” it said.
Chin Hin expects synergistic benefits as both companies are involved in the construction and property development industry.
It noted that Signature also has overseas presence in countries suchas Thailand, Indonesia, Vietnam, Cambodia, Brunei, Philippines, Maldives, Pakistan, United Arab Emirates, Sri Lanka, India and Singapore.
Chin Hin said the group may be able to leverage on such overseas network for future expansion abroad.