ENGINEERING services company Tee International is proposing to acquire a sign and advertising display manufacturer for S$14 million, it announced on Thursday (Dec 14).

The mainboard-listed company said in a bourse filing that it has entered into a legally binding term sheet with the shareholders of Carats&Co Pte Ltd to acquire the entire issued and paid-up share capital of the manufacturer.

Carats&Co is a manufacturer of signs and advertising displays, including the design, supply, fabrication and installation of digital and non-digital signs and displays.

Tee International said that the proposed acquisition is a strategic investment by the group as the manufacturer’s existing business is complementary to its previous core engineering and construction business segment.

The group anticipates that the acquisition will allow it to leverage Carats&Co’s market access and technical knowledge, and represents a strong opportunity for it to expand its business and operations, allowing it to achieve more consistent and sustainable financial growth.

The proposed acquisition comes after the group applied for a further extension of time to submit its revised trading resumption proposal in October.

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The company said in the regulatory filing that it is still working on the revised proposal, which will provide more details on how its proposed business plan will be able to support the group to operate as a going concern, upon the completion of its business and debt restructuring.

Trading in Tee International’s shares has been suspended since June 2021.