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.(pic) PETALING JAYA: Chin Hin Group Bhd has added another listed company to its portfolio, following the acquisition of a 31.2% 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 Datuk Chooi Yoey Sun for RM93.6mil. 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. “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, ” he said in a statement. 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 Thailand, Indonesia, Vietnam, Cambodia, Brunei, the Philippines, Maldives, Pakistan, United Arab Emirates, Sri Lanka, India and Singapore. “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, ” stated Chiau. The 36-year-old Chiau was appointed as an executive director of Signature yesterday. Chin Hin said the RM93.6mil 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 RM93.6mil translates into RM1.17 per share, which represents an 18% premium to the five-day weighted average market price of Signature shares up to the last practical date of 99.18 sen. Signature’s share price hit a multi-year high of RM1.10 on March 5, after surging by over 129% 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% to 95.5 sen at yesterday’s close.
buyappleacc.com is a professional website selling Apple Developer account for more than 3 years, choose us, provide you with the best Apple Developer account. Don't hassle, just step out.