Infoline to seek shareholder approval for RM18.58 mil headquarters acquisition, 10% Esos

PETALING JAYA (July 27): Infoline Tec Group Bhd is seeking shareholder approval to acquire two adjoining three-storey semi-detached factory buildings in Kota Damansara, Selangor, for RM18.58 million in cash as its new corporate headquarters, while also proposing to establish an employee share option scheme (Esos) of up to 10% of its issued share capital.

According to a circular issued in a Bursa Malaysia filing on Monday (July 27), the proposed acquisition involves two adjoining leasehold factory units in Taman Sains Selangor 1 with a combined purchase consideration of RM18,577,776, to be funded through a combination of approximately 85% bank borrowings and internally generated funds.

The properties comprise two intermediate units of three-storey semi-detached factory buildings with a combined built-up area of 17,636 sq ft on 99-year leasehold land expiring on Oct 18, 2106. They are located in Pekan Baru Sungai Buloh, Petaling district, and are intended to serve as Infoline's new headquarters upon completion of the acquisition.

Each property will be acquired for RM9.29 million, slightly below its independently appraised market value of RM9.3 million, giving a combined valuation of RM18.6 million by VPC Alliance (KL) Sdn Bhd as at March 5, 2026. The valuation was based primarily on the comparison method, with the income approach used as a cross-check.

New headquarters to consolidate operations

The group said it plans to relocate from several rented premises in Kota Damansara into the new headquarters, which will be fully owner-occupied.

It said the larger premises would provide additional capacity for its Network Operations Centre (NOC), which manages IT network operations, and Security Operations Centre (SOC), which monitors cybersecurity threats, while strengthening its corporate image and supporting long-term business growth. The relocation is also expected to generate annual rental savings of approximately RM227,000 after the termination of its existing tenancy agreements.

Following completion of the acquisition, Infoline expects to incur a further RM12 million to RM14 million in renovation and fit-out costs, to be financed through internally generated funds and/or bank borrowings. The final amount will depend on the eventual renovation plans.

Esos of up to 10% proposed

Separately, Infoline is proposing to establish an Esos covering up to 10% of its issued share capital, excluding treasury shares, at any point during the scheme's tenure.

The proposed Esos will have an initial duration of five years, with an option to extend it by another five years, subject to a maximum tenure of 10 years. The exercise price will be based on the five-day volume-weighted average market price of Infoline shares immediately before the award date, with a discount of up to 10%, subject to Bursa Malaysia's requirements.

The company said the Esos is intended to reward and retain employees and directors, align their interests with those of shareholders, and motivate long-term performance. Shareholders will also be asked to approve allocations to eligible directors at the forthcoming extraordinary general meeting.

The proposals require shareholders' approval at an extraordinary general meeting scheduled for Aug 28, after Bursa Malaysia Securities approved the listing of new shares that may be issued under the Esos on June 11.

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