Cacola proceeds with rights issue as it revamps business plan

It will now be focusing on high-quality furniture market.

Following the recovery of the China property market, Singapore-listed Cacola Furniture International Limited is taking the necessary steps to drive growth in its furniture manufacturing businesses by reviewing the group's business and operations.

According to the group, after carefully reviewing the performance of the China property and furniture sectors, it concluded that that investment in the furniture business has proven to be low risk relative to the potential for returns.

"The Company believes the best prospects at the current time are in high end quality furniture markets in China, South Korea, Australia and/or South East Asia countries," the group said in a report filed in SGX.

The company added that it intends to focus on business development with reputable operators in both upstream and downstream operations.

For the group, the move will be able to provide prime opportunity to balance the cyclical nature of assets and experience, which is expected to benefit the Group and
the shareholders.

Meanwhile, the group also decided to push through with the rights issue it announced in May, as well as the placement of settlement shares to the group's creditors.