Kossan unit buys land for RM82.42mil

  • Property
  • Wednesday, 28 Mar 2018

Glove power: Shares of rubber glove manufacturers have been on an uptrend since the beginning of the year on the back of a continuous strong US$.

PETALING JAYA: Kossan Rubber Industries Bhd’s subsidiary has completed its acquisition of two pieces of land totalling 824.11 acres for RM82.42mil cash, or RM2.30 per sq ft (psf), excluding the goods and services tax.

The group’s last purchase of industrial land was at RM22.50 psf. No valuation was carried out as the purchase was from a state development corporation.

Its subsidiary, Premium Medical Products Sdn Bhd, acquired HSD 24212 PT 10477 and HSD 24213 PT 10478, both in Bidor, Batang Padang, Perak, from Perbadanan Kemajuan Negeri Perak.

According to a Bursa Malaysia filing, the balance 80% of the purchase price amounting to RM65.94mil has already been paid in accordance with the sale and purchase agreement dated March 12, 2018.

The land held under HSD 24212 PT 10477 is a vacant leasehold commercial land of about 6.72 acres. The acquisition price is RM671,699.23.

The second parcel held under HSD 24213 PT 10478 is a piece of vacant leasehold industrial land of about 817.39 acres, priced at RM82.75mil. The lease of both expires in November 2114.

Both parcels of land will be used for Kossan group’s integrated glove manufacturing expansion, the Bursa Malaysia filing said. The acquisition was funded by internally generated funds.

Kossan said the strategic location, and the availability of local manpower, would help the group’s expansion in a centralised location over the medium and longer term.

The acquisition will not have any effect on the issued and paid-up share capital of Kossan and the shareholding of the substantial shareholders of Kossan, as it will be wholly satisfied in cash. It will also not have any material impact on the earnings and net assets of the group for the financial year ending Dec 31, 2018.

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