(Yicai) Dec. 18 -- DeRucci Healthy Sleep, a Chinese premium mattresses, bedding, and furniture manufacturer, said it will invest SGD46 million (USD34.1 million) to buy equities and assets in two Southeast Asian firms to enhance its overseas market share.

DeRucci's board of directors approved a plan for the company to fully acquire Singapore's Moratel International and the operation-specific assets of Indonesia's PTTC for making beds, sofas, and other household products from a Singaporean couple through two Hong Kong-based subsidiaries, DeRucci announced yesterday.

The transaction does not involve any related transactions or require major asset restructuring, so it does not need to be reviewed and approved at a shareholders' meeting, DeRucci pointed out. MIPL's equity was priced at SGD22.3 million and PTTC's assets at SGD23.7 million, with the total equal to about 71 percent of the targets' value, it added.

MIPL sells beds, sofas, and other household products in Singapore under its MaxCoil, Viro, and MooZzz brands, DeRucci said, adding that PTTC has a factory in Indonesia's Batam island that mainly makes such household supplies for MIPL.

The latest acquisition aligns with DeRucci's international development strategy, helping to improve its overseas production base layout, expand related sales channels, and accelerate its internationalization, the Dongguan-based firm noted. In addition, the company can speed up its development and enhance its core competitiveness in the Southeast Asian market by leveraging MIPL's extensive and efficient sales channels and branding in Singapore, Indonesia, and other neighboring countries.

DeRucci began selling products overseas in 2018, but the share of related revenue has remained under 3 percent of its total over the years. Such income fell 9 percent to CNY96.5 million (USD13.2 million) last year from the prior one, making up only 1.7 percent of its total annual revenue.

Shares of DeRucci [SHE: 001323] climbed 0.1 percent to CNY37.81 (USD5.19) apiece as of lunch break in Shenzhen today, after earlier rising by as much as 2.6 percent.

Editor: Martin Kadiev