Kulim acquires land from Johor Corp for RM17.93m

KUALA LUMPUR (Dec 7): Kulim (Malaysia) Bhd (Kulim) proposed to acquire a 14 acres of Johor industrial land from Johor Corp Bhd (JCorp) for a total consideration of RM17.93 million.

The acquisition will result in savings on monthly rental payable to JCorp and to accrue benefits to Kulim, in anticipation of the appreciation of value in the future, as the property still carries a 45-year unexpired lease period.

In a filing with Bursa Malaysia, Kulim said it had on Dec 7, entered into a sale and purchase agreement with JCorp in relation to the proposed acquisition of 14 acres of industrial land in mukim of Plentong, Johor Bahru.

The total purchase consideration was arrived at, on a willing buyer-willing seller basis, after taking into consideration the market value of the property.

The acquisition plan will be funded by Kulim's internally-generated funds.

The land is currently rented by EPASA Shipping Agency Sdn Bhd (EPASA), a wholly-owned subsidiary of Sindora Bhd, which in turn is a wholly-owned subsidiary of Kulim, at the rate of RM90,000 per month or RM1.08 million per year, from JCorp.

“The proposal is expected to contribute positively to the future earnings and EPS (earnings-per-share) of Kulim,” it said.

Kulim, which is 62%-owned by JCorp, closed 2 sen lower at RM3.85 today, for a market capitalisation of RM4.74 billion. JCorp had in November, proposed to privatise Kulim. -- theedgemarkets.com