Wooden picture frame maker, Classic Scenic Berhad has proposed to acquire a 51% equity interest in Redina Malaysia Sdn Bhd as it look to diversify its business into the retail sector encompassing apparel and food and beverages.
In line with this the company proposed a 30% private placement and the change of its corporate name from “Classic Scenic Berhad” to “Hextar Retail Berhad”. In its bourse filing, CSCENIC has on 12 December 2023 entered into a conditional share sale agreement (“SSA”) with Perdanis Distribution (M) Sdn Bhd to acquire 51.0% equity interest in Redina for a total purchase consideration of RM35.7 million, to be satisfied entirely in cash.
It proposes to make the acquisition by executing 2 tranches, with the first tranche, representing 20% equity interest in Redina will be acquired for a total purchase consideration of RM14.0 million and will be funded using proceeds raised from the proposed 30% private placement. The second tranche covering the remaining 31.0% equity interest in Redina, will be acquired for a total purchase consideration of RM21.7 million and will be funded through internally generated funds and/or bank borrowings.
Redina is an importer, general merchant and dealer in, amongst others, shoes, clothing and articles with a focus on apparels and undergarments. It is the brand licensee for Renoma, Jockey, Moto Guzzi, Alfa Romeo, Valentino Creations, Nautica, Crocodile, Arnold Palmer and Beverly Hills Polo Club. Its primary market is Malaysia. For the financial year ended 31 March 2023, Redina achieved a revenue of RM48.9 million with profit after tax of RM4.9 million.