by BERNAMA / pic credit: vs-i.com
VS Industry Bhd (VSIB) has entered into sale and purchase and construction agreements with Ipark Development Sdn Bhd to acquire six tracts of land with industrial buildings for RM98.77 million in Johor Bahru, Johor.
VSIB said Ipark is a 80 per cent-owned subsidiary of AME Integrated Sdn Bhd, which, in turn, is 99.9 per cent-owned by AME Elite Consortium Bhd, an integrated industrial park developer in Malaysia, specialising in providing well-managed full-service industrial parks in Johor.
In a filing with Bursa Malaysia today, the company said the acquisition of the land measuring about 343,911.96 square feet will increase its production capacity for future expansion purposes, including capturing opportunities arising from the US-China trade tension.
“This will enable the group to continue growing its business as its current manufacturing capacity is already fully utilised.
“With the acquisition, VSIB will also relocate its headquarters to the properties which would free up space at the existing manufacturing facilities to capture the rising orders from its existing customers,” it said.
It said the new properties, which are strategically located within close proximity of its existing manufacturing facilities, would allow the group to expand its capacity while at the same time maintain close management control on its existing operations, therefore enhancing overall operational synergies and efficiencies.
VSIB said barring any unforeseen circumstances, the exercise is expected to be completed by June 30, 2021.
The exercise does not have any effect on the share capital and substantial shareholders’ shareholdings of the company or any material impact on the earnings per share, net assets and gearings of VSIB for the financial year ending 31 July 2021, it said.
It added that the purchase consideration will be funded via internally generated funds and bank borrowings whereby the ratio between internally generated funds and bank borrowings will be determined at a later date.