A1 A.K. Koh calls shareholder vote on RM16.7 million Puchong land buy

PETALING JAYA (July 9): A1 A.K. Koh Group Bhd has proposed to acquire a 99‑year leasehold commercial land parcel in Pekan Puchong Jaya, Selangor, for RM16.73 million cash, with the proposed acquisition intended to support the development of a central region sales and marketing office.

The group said in a Bursa Malaysia filing yesterday that its wholly owned subsidiary A.K. Koh Enterprise Sdn Bhd had entered into a conditional sale and purchase agreement (SPA) on April 20, 2026 with Qualitypack Properties Sdn Bhd for the acquisition of a 1.01‑acre commercial land held under HSD 243851, PT 976, in Pekan Puchong Jaya, Daerah Petaling, Selangor. The purchase consideration of RM16,728,740 will be satisfied wholly in cash, funded via a combination of bank borrowings and internally generated funds.

According to a circular to shareholders dated yesterday (July 8), A.K. Koh Enterprise has obtained a RM14.85 million term loan from RHB Bank Bhd to part‑finance the purchase consideration, with the remaining amount to be funded from internally generated funds. The land is a vacant leasehold commercial parcel with an unexpired term of about 75 years and has been valued at RM16.5 million by Laurelcap Sdn Bhd using the comparison approach as at April 9, 2026.

The board noted that the agreed purchase price represents a premium of RM228,740, or 1.39%, over the valuer’s market value. It considered the premium “not significant and justified” based on the land’s availability, location and accessibility for the group’s intended central region operations.

From rented office to proposed central region office

The circular noted that A1 currently operates its central region business from a rented office at Taman Perindustrian OUG, Kuala Lumpur, with a built‑up area of about 4,938 sq ft and a monthly rental of RM10,000. It said the group’s revenue increased by about 6% between the financial years ended June 30, 2022 and June 30, 2025, and that A1 intends to grow its business in the central region.

The group said it plans to grow by penetrating new market segments, including halal and horeca (hotel, restaurant and catering), acquiring new customers and introducing new products and brands. In this context, the board said the existing rented premises are no longer sufficient to support the group’s daily operations and future expansion plans.

The circular stated that the land is intended to be developed into a four‑storey commercial building with an estimated gross floor area of approximately 45,260 sq ft to serve as the group’s regional sales and marketing office for the central region. It also stated that the proposed building is expected to provide a more suitable and scalable environment for the group’s operations, including space to support sales and marketing activities.

The board noted that this expansion was not contemplated at the time of A1’s listing on the ACE Market in July 2025, as no suitable land had been identified then and no portion of the listing proceeds was earmarked for this purpose.

Valuation, pricing and payment terms

Laurelcap ascribed a market value of RM16.5 million to the land based on a surveyed area of 4,070 sq m (about 1.006 acres or 43,809.48 sq ft), citing comparable transactions for commercial lands in the vicinity. The valuer adopted the comparison approach and did not apply an income or residual method given the intended owner‑occupation and the early stage of the proposed development.

A1 said the purchase consideration was arrived at on a willing‑buyer willing‑seller basis after taking into account the valuer’s assessment, the rationale and benefits of the proposed acquisition and the prospects of the land as outlined in the circular. The board is of the opinion that the purchase consideration is fair and reasonable and that the proposed acquisition is in the best interests of the group.

Under the SPA, the purchase consideration will be settled in cash in stages: an earnest deposit of 2% amounting to RM334,574.80, which was paid on Feb 24, 2026; a further 8% balance deposit of RM1,338,299.20 payable upon SPA execution on April 20, 2026; and the remaining 90%, or RM15,055,866, within three months from the SPA becoming unconditional, defined as the completion period. In the event A.K. Koh Enterprise fails to pay the balance within the completion period, the vendor will grant an automatic one‑month extension, subject to interest at 8% per annum on any outstanding balance, calculated on a daily basis from the day after the completion period until full payment.

Approvals, conditions and board recommendation

The proposed acquisition is subject to A1 shareholders’ approval at an extraordinary general meeting, as well as approvals from the Selangor state authority for the transfer of the land to A.K. Koh Enterprise and for the creation of a legal charge over the land in favour of the purchaser’s financier. Under the SPA, the conditions precedent must be fulfilled within six months from the SPA date, with any extension to be mutually agreed between the parties.

The circular stated that the proposed acquisition will not affect A1’s share capital or substantial shareholders’ shareholdings but will increase the group’s borrowings and finance costs due to the use of a term loan. After considering the purchase consideration, the salient terms of the SPA, the rationale, risk factors and prospects, the board said it is of the opinion that the proposed acquisition is in the best interests of the company and recommends that shareholders vote in favour of the resolution at the forthcoming EGM.

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