Chin Hin, which is a major shareholder in Chin Hin Group Property Bhd and Solarvest Holdings Bhd, emerged as Signature’s single-largest shareholder by purchasing 80 million ordinary shares from Tenyin Holding Sdn Bhd and Chooi Yoey Sun for 93.6 million ringgit ($22.75 million). The Star/ANN
Malaysia's Chin Hin Group Bhd has added another listed company to its portfolio, following the acquisition of a 31.2 per cent stake in Malaysia’s largest kitchen cabinet and wardrobe manufacturer, Signature International Bhd.
Chin Hin, which is a major shareholder in Chin Hin Group Property Bhd and Solarvest Holdings Bhd, emerged as Signature’s single-largest shareholder by purchasing 80 million ordinary shares from Tenyin Holding Sdn Bhd and Chooi Yoey Sun for 93.6 million ringgit ($22.75 million).
Chooi is the group executive director and a major shareholder of Signature.
The acquisition would allow Chin Hin to venture into kitchen, home and living solutions as compared to its focus on building materials currently, according to its managing director Chiau Haw Choon.
He said in a statement: “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 segment.
“Synergistic benefits are expected to arise from the acquisition as both the group and Signature are operating in and servicing the same industry, namely the construction and property development industry.”
In addition, Chin Hin aims to leverage on Signature’s extensive presence abroad for its future expansion.
It is noteworthy that Signature is currently present in Cambodia, Thailand, Indonesia, Vietnam, Brunei, the Philippines, Maldives, Pakistan, the UAE, Sri Lanka, India and Singapore.
Chiau said: “Upon completion of the acquisition, the group will be able to equity account the financial results of Signature, which is expected to increase the profitability and strengthen the financial position of the group.”
The 36-year-old Chiau was appointed as an executive director of Signature on March 8.
Chin Hin said the 93.6 million ringgit needed to fund the acquisition will be sourced from a
combination of internally generated funds and bank borrowings, after taking into consideration the group’s gearing level, interest costs and cash reserves.
The 93.6 million ringgit translates into 1.17 ringgit per share, which represents an 18 per cent premium to the five-day weighted average market price of Signature shares up to the last practical date of 99.18 sen (24.1 US cents).
Signature’s share price hit a multi-year high of 1.10 ringgit on March 5, after surging by over 129 per cent in two weeks.
However, following the announcement on Chin Hin’s emergence into Signature, the latter’s share price plummeted by 14.5 sen or 13.2 per cent to 95.5 sen at March 8’s close.
THE STAR (MALAYSIA)/ASIA NEWS NETWORK
