Signature International Berhad a leading kitchen cabinet manufacturer, has proposed to acquire a 23.67% stake in Main Market listed company Fiamma Holdings Berhad for a total cash consideration of RM180 million.
The group adds the rationale was to tap into Fiamma’s extensive nationwide coverage on distribution and servicing network of home and kitchen electrical appliances which it sees will synergise with its own kitchen cabinet and whole-house customistion business.
A filing with Bursa Malaysia showed that the Group had entered into a conditional share sale agreement with the major shareholder of Fiamma, namely Lim Choo Hong to acquire 120 million ordinary shares or 23.67% equity interest for the acquisition based on the purchase consideration of RM1.50 per share.
On a separate note, Divine Inventions Sdn Bhd, a private entity controlled by Datuk Seri Chiau Beng Teik’s family, entered into a Share Sale Agreement with Lim Choo Hong to purchase 30 million ordinary shares or 5.92% equity interest in Fiamma at RM1.50 per share. Collectively, Signature International and Divine Inventions will own a total of 29.59% equity interest in Fiamma upon completion of the acquisition.
Signature said the sale and purchase of the Fiamma shares, which is expected to be completed within 4 months from the date of the SSA, will be funded via a combination of internally generated funds and bank borrowings.
Fiamma has been profitable since its listing in 1997 and recorded an annual audited profit after tax of between RM27.72 million and RM35.92 million over the past 3 financial years.
Commenting on the latest corporate exercise, Signature International Berhad Managing Director Chiau Haw Choon said: “The proposed acquisition is in line with the Group’s objective of acquiring strategic stakes in profitable companies within the industry supply chain for future growth. Fiamma also hold distribution rights for international brands of medical devices and healthcare products namely Braun, Speed Queen, Omron, and Beurer.
Listed on the Main Market of Bursa Malaysia, Signature is mainly involved in the design, product development, manufacturing, marketing, and distribution of kitchen systems, wardrobe systems, and built-in kitchen appliances.
