TAFI keen to diversify into property development and construction

KUALA LUMPUR: Home and office furniture maker TAFI Industries Bhd has proposed to diversify into property development and construction.

The board expected these businesses to contribute 25% or more of the group’s net profits or cause a diversion of 25% or more of the group’s net assets in the financial year ending Dec 31, 2021 onwards, the Muar-based company said.

In a filing with Bursa Malaysia today, it also announced that wholly owned subsidiary, Tafi Development Sdn Bhd, had signed a conditional agreement with E Prompt Sdn Bhd to jointly develop 13.35ha in Cameron Highlands, Pahang, into a mixed development project.

This, it said, served as an entry point for the group to venture into property development.

“The proposed diversification will be spearheaded by (TAFI group CEO) Datuk Seri Wong Sze Chien and (group managing director) Datuk Seri Azlan Bin Azmi, who together with Datuk Seri Andrew Lim Eng Guan, emerged as the controlling shareholders of TAFI” after the completion of a mandatory take-over exercise on Oct 15, the company said.

With the diversification, TAFI is looking to explore acquisition of landbanks and/or existing property development projects, enter into joint-venture agreements with landowners/project owners/property developers and bid for new construction contracts.

“While the company will continue with its current businesses in manufacturing of furniture products, the proposed diversification also serves to mitigate the risk of over-dependence on its current manufacturing business via the additional revenue/earnings stream arising from contribution from the property and construction related businesses,” it said. – Bernama