HHRG to purchase Penang industrial land for RM15.7m - MIDA | Malaysian Investment Development Authority
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HHRG to purchase Penang industrial land for RM15.7m

HHRG to purchase Penang industrial land for RM15.7m

23 Jun 2023

HHRG Bhd, formerly known as Heng Huat Resources Group Bhd, has proposed to acquire a 7.23-acre leasehold industrial land in Penang for RM15.74 million via cash and share issuance.

The biomass material manufacturer plans to utilise the industrial land as the site of its new corporate headquarters, according to HHRG’s bourse filing on Friday (June 23).

HHRG said the group received a letter of irrevocable offer from canned food maker Jeenhuat Foodstuffs Industries Sdn Bhd for HHRG to purchase the land for RM15.74 million.

The group noted the purchase consideration was agreed upon on a willing-buyer willing-seller basis in consideration of the land’s market value of RM15.75 million as ascribed by independent valuer CBRE WTW Valuation & Advisory Sdn Bhd.

“The purchase consideration represents a discount of approximately RM7,750 to the ascribed market value of the acquisition,” it noted.

HHRG said half of the RM15.74 million purchase consideration is to be paid in cash, while the other half is to be satisfied via the issuance of an undisclosed number of HHRG shares to Jeenhuat.

HHRG said the land purchase is in line with the group’s mission to enhance its prestige and rebranding efforts by establishing its corporate headquarters at a strategic location.

The group noted that the land is strategically located 17.5km to the southeast of Penang Sentral, 24km to the Butterworth Port, and 36km to the Penang International Airport.

The acquisition is subject to the requisite approvals of HHRG’s shareholders, Bursa Securities, and the Penang Development Corp.

HHRG is principally involved in the manufacturing and trading of biomass material and value-added products, focusing on oil palm empty fruit bunch fibre, coconut fibre and value-added products.

It also manufactures and distributes its own brands of mattresses and bedding accessories, and has ventured into furniture and property segments.

Shares in HHRG closed unchanged at 30.5 sen, giving the group a market capitalisation of RM262.49 million.

Source: The Edge Malaysia