KUALA LUMPUR (Nov 2): Yoong Onn Corp Bhd has proposed to acquire a 60% stake in Singapore-based T.C. Homeplus for S$10.95 million (RM38.16 million).

The home linen and bedding accessories retailer told Bursa Malaysia on Thursday that it had entered into a share sale agreement with several Singaporean individuals — Wong Fun Ngian, Wong Fun Foong, Ang Teng Poh and Lim Ting Han — for the stake acquisition.

T.C. Homeplus is principally involved in the business of trading, distributing and retailing curtains, pillow cases, bed sheets and bed spreads.

“T.C. Homeplus is one of the leading names in house-brand manufacturing, and mainly serves customer segments like hotels, cruise liners, governmental units and major departmental stores in Singapore.

“The proposed acquisition will enable the group to extend its range of products and services and potential synergies by leveraging each other’s existing customer base in Singapore.

“As such, the proposed acquisition is expected to enhance the group's earnings base, and stand to benefit from the consolidation of T.C. Homeplus’ results,” said Yoong Onn.

For the latest financial year ended Dec 31, 2022, T.C. Homeplus reported a net profit of RM7.96 million against an annual revenue of RM55.42 million.

The proposed acquisition is slated to be completed by the final quarter of the year. UOB Kay Hian has been appointed as the adviser for the proposed stake acquisition.

Shares in Yoong Onn closed unchanged at RM1.58 on Thursday, giving the company a market capitalisation of RM252.80 million. Year to date, the stock has soared by 23.44%.