MSC acquires land and properties in Westport for RM50 mil

KUALA LUMPUR (June 16): Malaysia Smelting Corp Bhd (MSC) is buying three parcels of land at Pulau Indah Industrial Park, Westport — along with plant and machinery on the properties — for RM50 million.

In a filing with Bursa Malaysia, the integrated tin mining and smelting group said its subsidiary M Smelt (C) Sdn Bhd is acquiring the properties from Metal Reclamation (Industries) Sdn Bhd.

It is paying RM32.5 million for the three plots of leasehold land, with aggregate land size of 48,753 sq m, and the buildings built thereon, and RM17.5 million for the plant and machinery.

“The land disposal price was arrived [at] after considering the net book value of the properties and the land sale transactions in Pulau Indah and their proximity to Westport and the London Metal Exchange (LME) warehouse,” said MSC.

The purchase consideration will be funded via internal generated cash and bank borrowings, it added.

On the rationale for the purchase, the group said the properties and assets are located in an industrial park which is a matured area with good connectivity to Westport and the LME warehouse.

“The proposed acquisitions present the company with the opportunity to execute its business plan,” said MSC, adding the new manufacturing facilities can also cater to its long-term business plan.

Shares in MSC closed down three sen or 1.12% at RM2.65 yesterday, bringing a market value of RM265 million.

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This article first appeared in The Edge Financial Daily, on June 16, 2016. Subscribe to The Edge Financial Daily here.