PETALING JAYA: Signature International Bhd is set to become the largest kitchen and wardrobe company in Asean with the proposed acquisitions of Singapore’s Corten Interior Solutions Pte Ltd and Areal Interior Solutions Pte Ltd for S$47.8 million (RM160.48 million).
In a filing with Bursa Malaysia today, Signature said it has entered into a share sale agreement (SSA) with Corten director and shareholder Lim Leng Foo to acquire 75% equity interest in Corten for S$45 million cash.
The company also entered into an SSA with Lim and Areal director and shareholder Chua Wei Ping to acquire a 100% equity interest in Areal for S$2.80 million cash.
The acquisitions will be financed with a combination of internally generated funds and bank borrowings, and are expected to be completed by the first half of 2023.
Signature managing director Chiau Haw Choon said the proposed acquisitions are in line with the group’s objective of acquiring strategic stakes in profitable companies within the industry to secure strong and sustainable growth domestically and internationally.
“Corten, Singapore’s largest kitchen and wardrobe company with more than 50% market share of private residential property projects, is a perfect fit with Signature’s kitchen cabinet and whole house customisation business,” he said in a statement.
“We are upbeat about the group’s prospects. The consolidation of Corten and Ariel’s equity interests will increase Signature’s profitability and strengthen our financial position.
“There’s clear profit visibility as there’s not less than S$200 million in Corten’s order book as of end October 2022. This order book will keep the company busy for the next three years, 2023-2026. In addition, Corten guarantees a profit after tax of not less than S$10 million for the financial year ending Feb 28, 2023,” he added.
Corten’s clients include some of the best-known names in property development in Singapore and Malaysia, including Allgreen Properties Ltd, City Development Ltd, Capitaland Ltd, Fraser Property Ltd, Keppel Land Ktd, MCL Land Ltd, SC Global Developments Pte Ltd, Singhaiyi Group, Four Seasons Kuala Lumpur and SDB Properties Sdn Bhd.
