KUALA LUMPUR (Dec 16): Kitchen cabinet manufacturer Signature International Bhd is buying a 51% stake in a renovation company for RM15.3 million.

The group said it is acquiring the stake in Space Alliance Contracts Sdn Bhd to tap into the renovation industry.

Space Alliance is involved in corporate office, hospitality, residence and public amenity renovation works, Signature International said.

In a bourse filing, Signature International said it is acquiring the stake from Space Alliance’s directors Chang Chung Fei and Ng Mun Moh.

The purchase price which was arrived at on a "willing-buyer willing seller" basis and will be funded via internally-generated funds, it said.

Signature International said the exercise, which is expected to be completed by the second quarter of 2022, is expected to contribute positively to the group.

Signature International’s shares slipped two sen or 1.4% to RM1.41, giving it a market capitalisation of RM416.3 million. Year to date, the counter has surged 152%.