KUALA LUMPUR (Dec 12): Semiconductor company JHM Consolidation Bhd is acquiring a 5.59ha vacant leasehold land in Penang for RM27.06 million, cash, to expand its business into the manufacturing of telecommunication equipment.

JHM said the acquisition of the land is to enable the company to expand its business into telecommunication equipment manufacturing industries that serve multiple multinational corporations in North American, Europe and Asia, tapping into the growing demand for Internet of Things application, as well as Cloud/Data Center.

"The acquisition will enable JHM Group to diversify and broaden its business into product assembly and test for telecommunication equipment/devices and others electronics related segment, which include (but not limited to) Optical Fibre-related products, telco backbone switches products, wireless backbone equipment/device, Terabit Ethernet equipment/device, other high-value electronics products for industries control applications, automotive, electronics equipment and Automated Test Equipment," it said in a stock exchange filing yesterday.

The company inked a sale and purchase agreement (SPA) today with Mforce Bike Holdings Sdn Bhd for the acquisition. The property has a 60-year lease that expires on April 12, 2075.

JHM added that the acquisition will be funded by a combination of internally-generated funds and bank borrowings, the exact proportion of which will be decided later.

JHM shares slipped two sen or 1.10% to close at RM1.79 yesterday, giving it a market capitalisation of RM998.10 million. The counter was transferred from Bursa Malaysia's ACE Market to the Main Market on Nov 12. Since then, the stock has dropped 12.7%.

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