CHIN HIN ACQUIRES 31.2 PCT EQUITY IN SIGNATURE INTERNATIONAL FOR RM93.6 MLN

KUALA LUMPUR, March 8 --  Integrated builders company, Chin Hin Group Bhd has acquired 31.2 per cent equity interest in Signature International Bhd for RM93.6 million cash to venture into business-to-consumer (B2C) segment.

It had entered into a conditional share sale agreement with shareholders of Signature, namely Tenyin Holding Sdn Bhd and Datuk Chooi Yoey Sun to acquire 40 million ordinary shares or 15.6 per cent equity interest each based on the purchase consideration of RM1.17 per share.

“The acquisition represents an opportunity for the company to expand its product range from building materials into quality kitchen, home and living solutions,” said Chin Hin group managing director Chiau Haw Choon said in a statement.

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“The exercise will enable the company to tap into the B2C segment as Signature’s products are not only supplied to property development projects but also directly to consumers through its many retail outlets located locally as well as overseas,” 

He said the company can also tap into the order book of Signature which as at Dec 31, 2020 amounted to RM195 million for the kitchen and wardrobe system and RM234 million for the glass and aluminium segment.

Furthermore, Signature’s continuous efforts to expand its global footprint shall provide its business with better earnings prospects. 

Chiau said Chin Hin will also be able to consolidate the financial results of Signature, which is expected to increase its profitability and strengthen the financial position.

Post-acquisition, the shareholdings of Tenyin and Chooi in Signature will be reduced to 12.54 per cent and 9.48 per cent respectively, he said, adding that the acquisition will be funded through a combination of internally-generated funds and bank borrowings.

-- BERNAMA