KUALA LUMPUR (Nov 11): Ajiya Bhd is buying two parcels of contiguous freehold vacant industrial land in Setul, Negeri Sembilan from Sime Darby (Nilai) Sdn Bhd for a total cash consideration of RM34.48 million.

The group’s subsidiaries Asia Roofing Industries Sdn Bhd (ARI) and Ajiya Safety Glass Sdn Bhd (ASG) have entered into a sale and purchase agreement with the vendor to acquire the two plots of lands measuring 291,952 sq ft (6.7 acres) and 397,702 sq ft (9.13 acres) respectively, for RM14.59 million and RM19.88 million in cash.

The purchase consideration for the acquisition has been fixed RM50 per square foot and on an “as is where is basis”, according to the group, and to be funded via internally generated funds.

Ajiya noted that the acquisition is in line with the group's strategy to centralise its metal roll forming and safety glass manufacturing operations, which are currently located in Shah Alam and Puchong.

“The acquisition is imperative for Ajiya Group to further strengthen its foothold in the Central Region of Peninsular Malaysia. The land is located at a growing area that would be utilised for Ajiya’s future operational centralisation,” according to its filing with Bursa Malaysia on Thursday (Nov 11).

Barring any unforeseen circumstances, the board of the group expects the acquisition to be completed within two years.

Ajiya shares were up by 1.71% or one sen to close at 59.5 sen on Thursday, giving the safety glass and metal roofing maker a market capitalisation of RM181.23 million.

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