BMS proposes RM23.8 mil acquisition of Cheras industrial property for expansion

PETALING JAYA (Aug 7): BMS Holdings Bhd has proposed to acquire a freehold industrial property in Cheras, Selangor for RM23.8 million cash to support its long-term expansion plans and operational requirements, after its wholly owned subsidiary entered into a letter of offer with the vendor.

In a Bursa Malaysia filing on Thursday (Aug 6), the ACE Market-listed building materials supplier said Jubin BMS (1990) Sdn Bhd had offered to acquire a workshop together with offices on a freehold industrial property known as Geran Mukim 7804, Lot 44637, Seksyen 1, Bandar Cheras, Daerah Hulu Langat, Selangor, bearing the address Lot 467, Jalan Balakong Batu 11, 43200 Cheras, and measuring 4,555 sq m (1.13 acres), from Chyen Huat Hardware Sdn Bhd.

The property is currently used for industrial purposes and carries freehold tenure. Upon completion of the proposed acquisition, BMS intends to use it as a retail showroom, office and storage facility.

The group said owning the property would strengthen its business presence in Cheras while eliminating risks associated with rental increases, lease non-renewal and landlord-related constraints, providing greater long-term operational security.

BMS said the RM23.8 million purchase consideration was arrived at on an "as is where is" basis with vacant possession free from encumbrances. The acquisition will be funded through a combination of internally generated funds and/or bank borrowings, with the final funding mix to be determined upon execution of the sale and purchase agreement (SPA).

Under the letter of offer, Jubin BMS has paid a 2% earnest deposit of RM476,000. The balance comprises a 3% retention sum for real property gains tax, a 5% balance deposit upon execution of the SPA, and the remaining 90% payable within seven months of the SPA or by Dec 31, 2026, whichever is later.

The proposed acquisition carries a highest percentage ratio of approximately 9.04% under Bursa Malaysia's ACE Market Listing Requirements and does not require shareholders' or other regulatory approvals.

BMS said the proposed acquisition remains subject to the execution of an SPA with the vendor, which is expected within 30 working days from the date of the letter of offer or such further period as may be mutually agreed. The company will make a further announcement containing additional details upon execution of the SPA.

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