Signature International buys 45% stake in home furnishing firm with semiconductor-based customers

• Signature International said the purchase of the stake from ZZBSB’s director Foo Khai Shin for RM13.05 million is in line with its objective of acquiring strategic stakes in companies with potential for future growth.

KUALA LUMPUR (April 5): Kitchen specialist Signature International Bhd is acquiring a 45% stake in home furnishing company Zig Zag Builders (M) Sdn Bhd (ZZBSB) to diversify its customer base.

Signature International said the purchase of the stake from ZZBSB’s director Foo Khai Shin for RM13.05 million is in line with its objective of acquiring strategic stakes in companies with potential for future growth.

"Both the group and ZZBSB are involved in the fit-out industry, for retail and mainly on commercial projects,” the group said in a bourse filing on Wednesday (April 5).

“The proposed acquisition will also allow the group to have an indirect access to the ongoing and future projects of ZZBSB and also diversify its customer base to include the customers of ZZBSB which include predominantly semiconductor-based customers,” added Signature International.

ZZBSB is principally involved in the business of interior design, renovation, furnishing, installation, and maintenance and construction works.

The company has an issued share capital of one million shares, of which Foo currently owns 990,000 shares (99%). The other ZZBSB director Tan Leek Hui owns the remaining 1% of shares.

Based on ZZBSB’s audited financial statements, the company’s profit after tax is on a growth trajectory from RM240,604 for the financial year ended Dec 31, 2019 (FY2019), to RM314,144 in FY2020, and RM566,425 in FY2021.

Signature International said the acquisition, which is expected to complete by the second quarter of 2023, will be paid via internally generated funds.

The group recently announced a bonus issue of 295.25 million new shares on the basis of one bonus share for every one existing share.

Signature International shares closed unchanged at RM1.24 on Wednesday, valuing the group at RM732.22 million. Year-to-date, the counter has climbed 5.98%.