Dutch Lady buys 32.59 acres for RM59.8mil

  • Corporate News
  • Friday, 20 Mar 2020

DLMI managing director Tarang Gupta(pic) said the acquisition will be fully funded by internal funds.

PETALING JAYA: Dutch Lady Milk Industries Bhd (DLMI) has inked a conditional sale and purchase agreement (SPA) to acquire 32.59 acres of freehold industrial land for RM59.79mil.

The three parcels of land are located within the 1,100-acre technology park, Techpark@Enstek, in Bandar Enstek, Negri Sembilan.

DLMI plans to construct manufacturing facilities in the technology park, which is expected to be advantageous for the company’s long-term expansion plans in Malaysia, as well as for future corporate earnings.

However, at this stage, DLMI is unable to ascertain future investment costs of new facilities on the new land nor the commencement of operations, as multiple scenarios are still being considered by the management.

In a statement yesterday, DLMI managing director Tarang Gupta said the acquisition will be fully funded by internal funds.

“We are delighted to purchase the land from Pelaburan Hartanah Bhd (PHB) in view of its suitability for DLMI’s purposes.

“Our proposed acquisition demonstrates our strong confidence in Malaysia’s present and future economic outlook.

“The new land in Bandar Baru Enstek, connected by excellent infrastructure and road linkages to all urban centres and ports, will allow us to expand our manufacturing activities to cater to the growing demand of our products and ensure our consumers have access to our nutritious products, ” he said.

Techpark@Enstek is also certified with the halal status by the Halal Industry Development Corp and Jabatan Kemajuan Islam Malaysia.

The SPA is conditional upon DLMI obtaining approval from the government and shareholders, and PHB obtaining consent from the Negri Sembilan state government to transfer the land accordingly.

PHB is a wholly owned real estate investment holding company of Yayasan Amanah Hartanah Bumiputera.

The acquisition further demonstrates DLMI’s continued commitment towards fulfilling its purpose of nourishing the nation and growing milk consumption in Malaysia.

This is in line with the government’s National Health Agenda of achieving better health and nutritional status for Malaysians, especially the younger generation.

“DLMI has been serving Malaysians with nutritious, competitively-priced, high-quality milk and dairy products for 57 years, with the purpose of nourishing the people and helping them move forward in life.

“We hope to continue working hand-in-hand with the government to help make a difference in the lives of Malaysians, ” Tarang concluded.

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