PETALING JAYA: Shin Yang Group Bhd
(SYGroup) is acquiring an 8.316-hectare industrial property in Kuching, Sarawak, for RM34mil to expand its logistics operations and reduce its dependence on rented facilities.
The group said in its Bursa filing it entered into a sale and purchase agreement with Forescom Plywood Sdn Bhd on Sept 4 for the leasehold land and buildings at Jalan Semangat, Pending Industrial Estate.
SYGroup said it plans to use the property to support the expansion of its door-to-door logistics services, including the construction of a warehouse and container depot as part of its development as a complete logistics service provider.
The property is located within Kuching's industrial hub and near Kuching Port, which the group said it would enhance its operational capacity and logistical efficiency.
The acquisition would also reduce rental dependency and related party transactions as SYGroup is currently leasing from Forescom Plywood.
The RM34mil purchase price will be funded through a combination of bank financing and internally generated funds.
The property has a 60-year leasehold tenure expiring in March 2037 and includes an office building, workers' quarters, workshop and other buildings.
The transaction is a related party transaction as SYGroup's major shareholder Shin Yang Holding Sdn Bhd is the ultimate holding company of Forescom Plywood, while several directors and major shareholders have interests in both entities.
SYGroup's audit committee said in the filing the transaction was fair, reasonable and on normal commercial terms, and was not detrimental to non-interested shareholders.
The acquisition is not expected to significantly affect SYGroup's earnings or net assets for the financial year ending Dec 31, 2026, although it is expected to contribute positively to future earnings.
