EC Excel unit to acquire freehold industrial land in Bandar Sri Sendayan for RM10.17 mil

PETALING JAYA (July 2): EC Excel Holdings Bhd (formerly known as K. Seng Seng Corp Bhd) said its 51%-owned subsidiary Metalmach Micro Technology Sdn Bhd (MMTSB) has entered into a sale and purchase agreement (SPA) with MCGF Sdn Bhd in relation to the proposed acquisition of a piece of freehold industrial land in Bandar Sri Sendayan, Seremban, for RM10.17 million in cash.

In its Bursa filing, it said the land, held under H.S.(D) 215210, PT 11646, Bandar Sri Sendayan, Daerah Seremban, Negeri Sembilan, is currently registered in the name of MCGF Sdn Bhd. It has an area of about 10,732 sq m and is classified for industrial use, with an express condition that it shall be used for industrial purposes only. 

The land is subject to a restriction that any transfer, lease or charge requires written consent from the Negeri Sembilan state authority.

EC Excel said MMTSB entered into the SPA with MCGF on July 1, 2026. The land is being purchased on an “as is where is” basis, free from all charges and encumbrances and with vacant possession, subject to the terms and conditions of the SPA. 

MMTSB intends to fund the purchase price of RM10,165,858.56 via financing to be obtained from a bank or other financial institution.

MMTSB, which manufactures high‑precision tools and dies, moulds and mould parts, jigs, fixtures and mechanical parts, plans to utilise the land for the construction of a warehouse to support the group’s operational requirements. 

EC Excel said the proposed acquisition is in line with the group’s expansion strategy and is expected to enhance storage capacity, improve operational efficiency and provide additional space to support its future growth.

The company said the purchase price was arrived at on a willing‑buyer willing‑seller basis after taking into consideration, among others, the rationale and benefits of the acquisition, the strategic location of the land and market values in the surrounding vicinity. No valuation was carried out for the transaction.

EC Excel added that the proposed acquisition is not expected to have a material impact on the group’s share capital, substantial shareholders’ shareholdings, net assets, gearing, earnings or earnings per share for the financial year ending Dec 31, 2026. 

The transaction is not subject to shareholder approval, but is subject to consent from the Negeri Sembilan state authority for the transfer of the land to MMTSB.

The highest percentage ratio applicable to the proposed acquisition under Paragraph 10.02(g) of Bursa Malaysia’s Main Market Listing Requirements is 6.26%, based on EC Excel’s audited consolidated financial statements for the financial year ended December 31, 2025. 

EC Excel said none of its directors, major shareholders or persons connected with them has any direct or indirect interest in the acquisition, and the board is of the opinion that the deal is in the best interest of the company.

The SPA is conditional upon the state authority’s consent for the transfer of the land. Barring unforeseen circumstances, EC Excel expects the proposed acquisition to be completed in the fourth quarter of 2026.

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