CPE Technology unit acquires RM10 mil Johor industrial property to expand manufacturing

PETALING JAYA (Aug 5): CPE Technology Bhd's wholly owned subsidiary, Champion Precision Technology Sdn Bhd (CPT), is acquiring a freehold industrial property with an existing factory in Ulu Tiram, Johor, for RM10 million cash to expand the group's manufacturing capacity, according to a Bursa Malaysia filing.

The 0.4039-hectare property at No 17, Jalan Indah Gemilang 5, Taman Perindustrian Gemilang is being acquired from Flomatic Industries Sdn Bhd under a sale and purchase agreement signed on July 21. The acquisition will be funded from the group's initial public offering (IPO) proceeds.

CPE said the RM10 million purchase price was negotiated on a willing-buyer, willing-seller basis after considering the property's strategic value and indicative market prices of comparable industrial properties in the area.

The company said the acquisition forms part of its long-term strategy to strengthen its manufacturing and industrial capabilities. Located near CPT's existing factories, the property will provide additional space for new and expanded manufacturing lines, supporting the group's production capacity and future growth plans.

The acquisition is not expected to have a material effect on the group's earnings, earnings per share, net assets, net assets per share or gearing for the financial year ending June 30, 2027. The company expects the acquisition to contribute positively to future earnings.

The acquisition is expected to be completed by the second quarter of FY2027. It does not require shareholders' or other relevant authority approvals, and the highest applicable percentage ratio is 3.05%.

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