Sunway buys Dolomite unit's land for RM125m

Scomi Group Bhd surprised investors when it proposed to revise its current issued share capital reduction from RM224.96mil to RM3mil from the earlier RM40mil.

KUALA LUMPUR: Sunway Bhd is buying 784 acres of leasehold land in Ulu Langat, Selangor with the quarry plant and machinery from Dolomite Corporation Bhd for RM125mil.

It said on Monday  Sunway Holdings Sdn Bhd has signed a share sale agreement with Dolomite Industries Co. Sdn Bhd to acquire its quarry unit – Dolomite Granite Quarry Sdn Bhd and four parcels of land.

The purchase of the quarry unit was for RM100 while the land and machinery was for RM125mil. The purchase excluded the premix plant and mobile machinery on the four parcels of land. 

“The consideration of RM125mil for the lands together with the plant and machinery represents a premium of RM2mil or 1.6% to the aggregate market value of the lands, plant and machinery based on a preliminary valuation of RM123mil,” it said.

The proposed acquisition was expected to be completed by the third quarter of 2019. 

“The proposed acquisition is expected to improve the market share and contribute positively to the financial performance of the quarry division given its strategic location and huge rock reserves. 

“From an operational perspective, the company will achieve lower production cost through economies of scale from high production volumes,” Sunway said.