KUALA LUMPUR (June 3): Tin can manufacturer Johore Tin Bhd is buying a piece of freehold land measuring approximately 297.51 acres for RM169.8 million cash in Kuala Langat, Selangor to expand its manufacturing operations as well as to undertake property development activities.
The land is located along the eastern side of Jalan Pusara within Banting.
According to the filing with Bursa Malaysia, its wholly-owned subsidiaries Able Dairies Sdn Bhd (ADSB), Unican Industries Sdn Bhd (UISB) and Able Development Sdn Bhd (ASB) entered into a conditional sale and purchase agreement today with PNB Development Sdn Bhd.
The purchase of the land will provide the group with an additional source of the revenue and earnings as well as reduce its dependence on the existing businesses.
It said, the purchase consideration is proposed to be funded via internally-generated funds and bank borrowings.
“Barring unforeseen circumstances, the company expects that the proposed property development should contribute positively to the future earnings, earnings per share and net assets of the group,” it said.
The proposed land acquisition will be completed in the fourth quarter of 2022.
Johore Tin share price gained five sen at RM1.62, translating into a market capitalisation of RM502.96 million.
Edited by Kathy Fong