MTAG’s RM53.58m Johor Bahru land deal turns unconditional

PETALING JAYA (Aug 28): MTAG Group Bhd’s proposed RM53.58 million acquisition of about 18.6 acres of freehold land in Johor Bahru has become unconditional, moving the group closer to securing the site for its planned manufacturing expansion.

The transaction is contractually linked to SDS Group Bhd’s separate acquisition of an adjoining parcel, with the two land deals structured for en bloc and simultaneous completion.

In a Bursa Malaysia filing on Friday (Aug 28), MTAG said its sale and purchase agreement (SPA) became unconditional that day after the conditions precedent under the adjoining-land SPA had been fulfilled.

The three-month contractual completion period has consequently commenced, with an automatic extension of another two months. Interest of 8% per annum, calculated daily, will apply to any unpaid balance during the extension period.

MTAG is acquiring the vacant land through its wholly-owned subsidiary MTAG Land Sdn Bhd from Grand Focus Sdn Bhd for RM53.58 million cash.

The property, held under Geran 37995 Lot 25948 in Mukim Tebrau, is located off Jalan Kempas Lama within Taman Perusahaan Ringan Pulai, about 12km northwest of Johor Bahru city centre.

It measures 811,846 sq ft, or about 18.6 acres, and was valued at RM53.6 million as at Dec 31, 2025 by independent valuer Cheston International (Johor) Sdn Bhd.

Separate deals tied to simultaneous completion

MTAG’s SPA is inter-conditional and inter-dependent with a separate SPA for the adjoining 35.4-acre parcel held under Geran 29534 Lot 900 in Mukim Tebrau.

That parcel is being acquired by London Bakery Sdn Bhd, a wholly-owned subsidiary of SDS Group, from Kempas Green Development Sdn Bhd for RM101.70 million.

While MTAG and SDS are pursuing separate acquisitions involving different buyers, vendors and land parcels, MTAG’s SPA is contractually inter-conditional with the adjoining-land SPA, and the two transactions are to be completed on an en bloc and simultaneous basis.

MTAG had in July extended the conditional period for its acquisition to Aug 31 to allow the conditions under the adjoining-land SPA to be fulfilled.

The fulfilment of those conditions enabled MTAG’s SPA to become unconditional on Aug 28. The acquisition itself has not yet been completed.

Manufacturing expansion

MTAG plans to use about one-third of its 18.6-acre site for its own operations, while the remainder may be retained for future development or rental, subject to market conditions, relevant approvals and the group’s future requirements.

The group said the acquisition is part of its long-term strategy to strengthen its manufacturing and industrial capabilities, expand production capacity and consolidate its manufacturing, warehousing and logistics operations.

It also plans to pursue higher-value opportunities, including 3D and tracking labels and customised packaging solutions, supported by automation, advanced converting technology and upgraded machinery.

The land’s existing use is stated as agricultural, while it is presently zoned for residential use. MTAG intends to seek approval to convert the land use to industrial use for its planned development.

The group cautioned that there is no assurance the conversion will be approved. If approval is not obtained, MTAG may be unable to proceed with its intended development and operational consolidation plans.

MTAG has already paid a 10% deposit for the land. The remaining 90%, or RM48.22 million, is payable within three months from the date the SPA became unconditional.

The proposed acquisition does not require MTAG shareholders’ approval. The transaction carries a highest percentage ratio of about 24.5% under Bursa Malaysia’s ACE Market Listing Requirements, based on MTAG’s audited financial statements for the financial year ended June 30, 2025.

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