Sunday 14 Jul 2024
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KUALA LUMPUR (April 17): China-based Xiamen GoldenHome Co Ltd is investing RM8.5 million to take up 22.42 million shares being placed out by Signature International Bhd, which represents a 10% equity stake in the local kitchen and wardrobe maker, based on its issued share base.

Similarly involved in the business of manufacturing and distributing kitchen cabinets, wardrobe and customised home-furniture products, Xiamen Goldenhome is listed on the Shanghai Stock Exchange. As of today, it has a market capitalisation of 4.03 billion Chinese yuan (about RM2.49 billion).

Xiamen Goldenhome is taking up the placement shares via its wholly owned subsidiary, JPND Singapore Pte Ltd. The issue price for the placement shares were fixed at 37.92 sen per share, according to Signature in a stock exchange filing today.

Following the investment, the two companies will explore business opportunities in the field of customised built-in home and smart-home living furniture in Malaysia and Southeast Asia, according to Signature. Signature inked a framework agreement with JPND for the collaboration today.

On completion of the private placement, JPND shall have the right to appoint one non-independent non-executive director to Signature's board, as long as it continues to hold at least an 8% equity interest in the group, said Signature.

“The Board believes that the entry of JPND will enable both parties to leverage on each other’s technical knowledge and experience in the kitchen systems/furnishing industry to offer a more comprehensive range of products," it further added.

Signature proposed the private placement on Jan 21 this year to raise proceeds to expand its manufacturing facilities, and to penetrate countries like Cambodia, Thailand, Myanmar and Indonesia.

Signature’s share price has rebounded since hitting its all-time low of 16.5 sen on March 18 -- the day Malaysia enforced its movement control order.

It closed 0.5 sen or 1.37% higher at 37 sen today, giving it a market capitalisation of RM82.95 million. The counter saw 158,000 shares done.

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