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Mainland Headwear Holdings’ subsidiary, Sharp Assets, has secured an agreement to acquire a 55% stake in Difuzed, a prominent design company based in the Netherlands, for €5 million. The deal was disclosed in a filing with the Hong Kong Exchange on Monday.
Difuzed, a well-established name in European design, is incorporated in the Netherlands and is ultimately owned by Gilbert El-Kalaani. Under the terms of the agreement, Sharp Assets will buy 175 ordinary shares from Sunset OG for €1.8 million and subscribe to 100 newly issued ordinary shares in Difuzed for an additional €3.2 million. This transaction marks a significant step in Mainland Headwear’s strategy to broaden its influence in the European design sector.
The acquisition will give Sharp Assets a substantial stake in Difuzed, enhancing its portfolio and market presence. This move aligns with Mainland Headwear’s broader goal of expanding its operations and strengthening its position within the European market. Difuzed’s expertise and reputation in design are expected to complement Sharp Assets’ existing business, potentially driving growth and innovation.
Following the announcement, Mainland Headwear’s shares experienced a modest increase, closing up by over 1% on Tuesday. The positive market reaction highlights investor confidence in the strategic benefits of the acquisition. This confidence is attributed to the anticipated synergies and growth opportunities arising from the integration of Difuzed’s design capabilities with Mainland Headwear’s existing operations. The completion of this acquisition is poised to bolster Mainland Headwear’s footprint in the European design industry.