Karyon Industries to acquire Johor factory and industrial land for RM8.61 mil

KUALA LUMPUR (July 3): Karyon Industries Bhd (KIB) has proposed to acquire a piece of freehold industrial land together with a detached factory in Bandar Seri Alam, Johor, for RM8.61 million cash.

In a Bursa Malaysia filing yesterday, Karyon said its wholly-owned subsidiary, Hsing Lung Sdn Bhd (HLSB), entered into a sale and purchase agreement (SPA) on the same day with Tanah Temasik Sdn Bhd (TTSB) for the acquisition.

The subject property comprises approximately 3,587 sq m of freehold industrial land held under H.S.(D) 208324 PTD 110015, Mukim Plentong, Johor Bahru, together with a detached factory at No.10, Jalan Masai Lama, Bandar Seri Alam, Johor. The property is currently used as factory and storage premises by TTSB.

Karyon said the purchase consideration was determined on a willing buyer-willing seller basis after taking into account an independent market valuation of RM8.8 million by VPC Alliance (JB) Sdn Bhd.

The acquisition will be funded through RM2.61 million in internally generated funds and RM6 million in bank borrowings.

Karyon said the proposed acquisition aligns with its long-term strategy to strengthen manufacturing and industrial capabilities, providing additional space for new and existing manufacturing lines and increased storage capacity. The group said the property's proximity to its existing facilities is expected to support future expansion plans.

The company said the acquisition is not expected to materially affect earnings, net assets, or share capital for the financial year ending March 31, 2027, although it is expected to contribute positively to future earnings.

The proposed acquisition is not a related party transaction, is not subject to shareholder or other regulatory approvals, and is expected to be completed by the fourth quarter of 2026.

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