SINGAPORE (April 21): Builder and construction company Keong Hong Holdings is acquiring a 60% stake in Hansin Timber Specialist and Trading for a consideration of $4.5 million to be funded by internal sources.

Hansin is engaged in the supplies and installation of timber floorings and exterior timber decking, trellis and roofing for residential and commercial development projects in Singapore.

Vendors Tan Tee Meng and Heng Soon Miang will receive $3 million in cash and will be issued 2.6 million in new shares at 58.5 cents each, representing 1.1% of Keong Hong’s enlarged issued share capital.

For the three months ended Dec, the target posted a net profit of $0.86 million.

Keong Hong says the proposed acquisition is part of the corporate strategy of the company for long-term growth to provide shareholders with diversified returns.

The board believes that the proposed diversification will offer new business opportunities, provide the company with additional revenue streams and enhance shareholder value.

Shares of Keong Hong closed at 50 cents on Friday.