KUALA LUMPUR: Pekat Group Bhd
is acquiring six parcels of freehold industrial land in Nilai, Negeri Sembilan, from Sime Darby Property (Nilai) Sdn Bhd for RM30.58mil to support its business expansion.
In a filing with Bursa Malaysia, the company said its indirect 60%-owned subsidiary, EPE Switchgear (M) Sdn Bhd, had entered into six sale and purchase agreements on Oct 30 for the acquisition.
The six adjoining parcels, measuring a combined 38,108 sq m, form part of the Bandar Hamilton Nilai industrial development.
The purchase consideration of RM30.58mil reflects rebates totalling RM2.25mil from the original price of RM32.82mil.
“EPE’s existing premises in Nilai do not have sufficient capacity for the group’s planned expansion. The lands will accommodate EPE’s existing switchgear manufacturing operations and the group’s battery energy storage system, transformer and substation businesses, and provide the group with long-term security of tenure for its operations,” Pekat said.
The acquisition will be funded through internally generated funds and/or bank borrowings, with payments to be made progressively according to the completion of infrastructure works.
Under the agreements, Sime Darby Property (Nilai), a wholly-owned subsidiary of Sime Darby Property Bhd, is required to complete infrastructure works and deliver vacant possession within 48 months.
Pekat said the acquisition was not expected to have a material impact on its net assets and earnings for the financial year ending Dec 31, 2026, apart from potential financing costs.
However, the group's gearing could increase if bank borrowings are used to finance the purchase.
