KUALA LUMPUR (April 21): Plastic material and resin manufacturer Luxchem Corp Bhd has proposed to acquire a leasehold property in Petaling Jaya, Selangor, for a total consideration of RM19.88 million.
The company said it intends to shift its head office to the newly acquired property, amid space constraints at its existing head office situated in Damansara Utama.
According to Luxchem’s bourse filing, Luxchem Trading Sdn Bhd (LTSB), a wholly-owned subsidiary of the company, has entered into a sale and purchase agreement (SPA) with Worldwide Emergency Assistance (Malaysia) Sdn Bhd to purchase the whole of Block N at Jaya One, Petaling Jaya.
The property has a built up area of 28,578.2 sq ft, with a 99 years leasehold tenure due to expire on May 28, 2105. It is also free from all encumbrances and not subject to any restriction in interest.
Luxchem said the purchase price was arrived at on a willing buyer-willing seller basis after taking into consideration the assessment on the location, accessibility, suitability of the site, availability of public services and development of the surrounding area.
“The settlement of the purchase price will be funded by cash via internally-generated funds and bank borrowings,” it said, adding that the proposed acquisition is expected to be completed within three months from the date of the SPA.
Luxchem’s share price finished 2.14% or one and a half sen lower at 68.5 sen on Wednesday (April 20), bringing it a market capitalisation of RM732.86 million.
Edited by Ahmad Naqib Idris
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