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- The deal comes as the company racked up more than RM252 million of cash and cash equivalents as at the end of June. Borrowings totalled RM45.65 million, resulting in net cash of nearly RM207 million.
- The seller is Sime Darby Property (Bukit Raja) Sdn Bhd, a wholly-owned subsidiary of Sime Darby Property Bhd.
KUALA LUMPUR (Sept 3): Cash-rich industrial chemical firm Luxchem Corporation Bhd (KL:LUXCHEM) is acquiring three plots of land in Klang for RM40.55 million to be developed in the future.
The price tag for the land, spanning six acres in Bandar Bukit Raja 3 Industrial Park, equates to about RM155 psf. The proposed acquisition is in line with its strategy to optimise capital and enhance returns on surplus cash, the company said in an exchange filing.
“Rather than maintaining idle funds in fixed deposits with modest yields, the group plans to acquire the lands and collaborate with a property developer to unlock higher investment returns through future development and sale of the property,” it said.
The deal comes as the company racked up more than RM252 million of cash and cash equivalents as at the end of June. Borrowings totalled RM45.65 million, resulting in net cash of nearly RM207 million.
The seller is Sime Darby Property (Bukit Raja) Sdn Bhd, a wholly-owned subsidiary of Sime Darby Property Bhd (KL:SIMEPROP).
The transaction will be done through Luxchem’s 55%-owned unit Lexis Chemical Sdn Bhd. The rest of Lexis Chemical is held by its co-founder and directors Chuah Kim Piew and Lee Juinn Yong.
Luxchem said the acquisition will be funded through a combination of internally generated funds and bank borrowings with the final mix to be determined later. The transaction is expected to be completed within 48 months.
The company said it will evaluate development plans but did not elaborate further on its intent for the land.
Luxchem shares were unchanged at 38.5 sen on Wednesday, valuing the group at RM411.9 million. Year-to-date, the stock has declined 23.8%.
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