PETALING JAYA: Sanichi Technology Bhd is acquiring a 12-storey building in Bangsar South, Kuala Lumpur, for RM46mil.
In a filing with Bursa Malaysia yesterday, the company said its wholly-owned subsidiary, Sanichi Capital Sdn Bhd (SCSB) had entered into a sale and purchase agreement with Takaful Ikhlas Family Bhd to acquire the 54,046 sq ft building.
“The business activities of Sanichi group are precision mould and property development. Hence, the proposed acquisition will be able to complement the business activities of SCSB,” Sanichi said.
It added that the proposed acquisition will be funded from internally generated funds and bank borrowings.
“Sanichi group will part-finance the purchase consideration through internally-generated funds and bank borrowings.
“In securing the bank borrowings to fund the proposed acquisition, the gearing level of the Sanichi group will increase and any adverse movement in interest rates may have an impact, which can adversely affect the group’s financial performance in the future.
“In mitigating such risk, the group will take into consideration the level and nature of borrowings and seek to adopt appropriate cost effective financing options,” Sanichi said.
Barring any unforeseen circumstances, Sanichi said the proposed acquisition is expected to be completed in the second half of 2019.
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