KUALA LUMPUR: Pantech Global Bhd’s wholly-owned subsidiary, Pantech Steel Industries Sdn Bhd, has entered into a sale and purchase agreement with Uptown Promenade Sdn Bhd to acquire a parcel of land in Klang, Selangor, for RM29 million.
In a filing with Bursa Malaysia today, the company said the proposed acquisition involves 1.96 hectares of land, as the group intends to expand its Selangor operations by establishing a new factory and corporate head office, namely Klang Factory 2, by 2028.
"The proposed acquisition is expected to be completed by the fourth quarter of 2025. With the expansion of the Selangor operations, the group can broaden the range of carbon steel butt weld pipe fittings in terms of normal pipe size, wall thickness and material grade,” it said.
Pantech has also proposed a variation to the utilisation of proceeds of RM38 million raised from its initial public offering (IPO) to fund the proposed acquisition.
Under the proposed variation, it said the allocation for the acquisition of land, including the ancillary cost, has been revised from RM35 million to RM30 million, as land conversion will not be required for the new site.
"The reduction of RM5 million will be allocated to construction works. Due to the smaller size of the land, the company will no longer proceed with the construction of a workers’ hostel using IPO proceeds. The RM3 million originally allocated for this purpose will also be reallocated to construction works.
"This brings the revised total construction allocation to RM16 million,” said Pantech.
The company said the proposals are not expected to have any material effect on its consolidated earnings and the earnings per share for the financial year 2026.
"However, the proposed acquisition is expected to contribute positively to our future earnings,” it added. - Bernama
