Friday 29 Mar 2024
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KUALA LUMPUR (Dec 23): Fiamma Holdings Bhd is acquiring two pieces of land located at the fringe of the Sungai Besi industrial hub here for RM48.98 million.

In a filing with Bursa Malaysia, Fiamma said its wholly-owned unit Fiamma Properties Sdn Bhd today entered into a sale and purchase agreement with the administrator of the estate of Hoh Kuan@Ho Kwan for the land.

The freehold land measuring some 1.6 acres is intended for both residential and commercial development purposes.

Fiamma said the acquisition is to cater for future expansion of its property development activities and to enhance its future earnings.

The firm will fund the acquisition via bank borrowings and internal funds. It will decide on the funding breakdown at a later stage.

Assuming 80% of the RM48.98 million is financed through external borrowings, Fiamma said its proforma gearing position shall increase to 0.36 times from 0.23 times.

It added the earnings per share of the group is expected to enhance over time.

The acquisition is expected to complete in the financial year ending Sept 30, 2015.

Fiamma shares closed down 2 sen or 0.99% to RM2.01 today, giving it a market capitalisation of RM275.19 million.

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