KUALA LUMPUR: Electrical home appliance maker Fiamma Holdings Bhd is diversifying into property development business with purchase of two property firms in Kota Tinggi, Johor, for RM16.58 million. The company entered into conditional share sale and purchase agreements on Feb 6 to acquire the entire equity interest in Uniphoenix Jaya Sdn Bhd for RM12.81 million and Oaksvilla Sdn Bhd for RM3.77 million. Uniphoenix owns 7.7 acres of freehold land and 34 completed units of shop houses in Taman Kota Jaya, while Oaksvilla owns 11.3 acres of freehold land adjacent to Taman Kota Jaya, 85.7 acres of leasehold land about 4km from Kota Tinggi town and 16 completed units of single and double storey terrace houses. Fiamma also proposed a renounceable two-call rights issue of up to 42.92 million shares together with up to 57.23 million free detachable warrants on the basis of three rights shares together with four warrants for every six existing shares to finance the acquisitions and part repayment of RM13.52 million in advances to Oakvilla by its shareholder Tiaraview (M) Sdn Bhd.
(11-2-2008 The Edge)
