Signature to acquire 23.7pc stake in Fiamma for RM180m

KUALA LUMPUR: Kitchen cabinet manufacturer Signature International Bhd is acquiring a 23.67 per cent stake in Fiamma Holdings Bhd for RM180 million.

Fiamma is principally an investment holding company and its subsidiaries are involved in trading and services, property development and investment holding and property investment.

Signature said it had entered into a conditional share sale agreement (SSA) with Fiamma’s major shareholder, Lim Choo Hong.

The company is buying 120 million shares, representing the 23.67 per cent stake, at 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 SSA with Lim to purchase 30 million ordinary shares, or a 5.92 per cent equity interest, in Fiamma at RM1.50 per share.”

Collectively, Signature and Divine Inventions will own a total 29.59 per cent stake in Fiamma upon completion of the acquisitions.

Signature said the transaction was expected to be completed within four months from the date of the SSA and would be funded by a combination of internally generated funds and bank borrowings.

Signature managing director Chiau Haw Choon said the proposed acquisition was in line with its objective of acquiring strategic stakes in profitable companies within the industry supply chain for future growth.

He said Fiamma and its subsidiaries’ main business, which was home and kitchen electrical appliances, owned many inhouse brands such as Elba, Faber, Rubine, Tuscani and Haustern.

“We have observed exciting prospects in this company, which has seen a significant uptick in demand for its products due to the Covid-19 pandemic,” he added.