Signature International Sells Aluminium and Facade Businesses for RM17.53 Million Amid Construction Challenges

Signature International

Signature International Bhd, a kitchen cabinet maker, has announced the sale of its aluminium and facade businesses for RM17.53 million in response to increasing challenges in the construction market, including cost overruns and rising project material costs. The proceeds from the divestment will be utilized for working capital and repayment of bank borrowings, according to Signature’s filing with Bursa Malaysia on Monday (June 19).

The company, which is 31% owned by Chin Hin Group Bhd, is selling its complete equity interest in Signature Aluminium Sdn Bhd and a 51% stake in Signature Facade Treatment Sdn Bhd to Fortune Greenbest Sdn Bhd, an aluminium and facade player equally owned by Por Teong Eng and Lim Sor Yee. The remaining 49% stake in Signature Facade is held by Signature Aluminium (24%), Yong Chuan Chin (15%), and Ang Chek Peow (10%).

“The proposed divestments are aimed at reducing the costs associated with maintaining the loss-making subsidiary, namely Signature Facade, and thereby improving the balance sheet of the Signature Group,” explained Signature.


In addition, the group has entered into a settlement agreement for Signature Facade to repay advances totaling RM34.45 million over 12 monthly payments.

“The divestment aligns with Signature Group’s strategy to improve operational efficiency through divestiture, allowing management to focus more on the home furnishing industry and interior fit-out works,” stated the group.

As of March 31 of this year, Signature’s cash and bank balances, along with fixed deposits with licensed banks, amounted to RM23.61 million, representing a 23.6% decrease from RM30.91 million at the end of 2022.

The group also held short-term investments in quoted shares and unit trust funds totaling RM31.72 million as of end-March, down 11.6% from RM35.87 million at the end of 2022.

However, bank borrowings increased by 4.0% during the same period to reach RM234.38 million as of the end of March this year, with RM130.91 million classified as long-term and RM103.47 million classified as short-term.

Signature stated that the divestments, which do not require shareholders’ approval, are expected to be completed by the third quarter of this year.

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