Multi Mould acquires industrial land for RM11.5m to enlarge capacity
12 Jul 2022
MULTI Mould Industries Bhd has acquired industrial land and constructed buildings in Pusing, Perak for RM11.5 million to increase its production capacity, according to a filing today.
The 40,054 sq m land has a three-storey office building annexed with a single-storey factory building, a single-storey factory building and ancillary buildings which are accessible to Ipoh city centre.
“The property was identified as the location of the property is near the current facility of the group and has readily available factory buildings that can be utilised by the group to house new machineries,” it stated.
Multi Mould said it had entered into a conditional sale and purchase agreement (SPA) with Foong Kim Yen & Sons Engineering Works Sdn Bhd on July 8 to acquire the parcel of industrial land and constructed buildings for cash consideration of RM11.5 million from its market value of RM12.5 million.
“The purchase consideration will be satisfied entirely in cash, which will be funded via a combination of internally generated funds and/or borrowings, the breakdown of which has not been finalised at this juncture,” it noted.
Based on Multi Mould’s latest unaudited consolidated financial results as at Dec 31, 2021, its cash and cash equivalents stood at approximately RM7.8 million.
The total purchase consideration is to be satisfied entirely in cash in deposit to be paid upon signing of the SPA, balance of the purchase consideration is to be paid within three months from the date of Multi Mould’s shareholders’ approval is obtained or the vendor obtained the consent of the state authority and charged and delivered a copy of the same to Multi Mould’s solicitors.
“The proposed acquisition will not have any effect on the issued share capital and substantial shareholders’ shareholdings in the company as the purchase consideration will be fully satisfied in cash,” it added.
The acquisition is not expected to have an immediate or material effect on Multi Mould’s earnings and earnings per share for the financial year ending June 30, 2023.
Foong Kim Yen & Sons Engineering was incorporated in Malaysia in 1972 as a private limited company which principally involved in the business of general contractors, investment holding and transportation.
As of July 6, the vendor’s issued share capital is RM560,000 comprising 5,600 ordinary shares and its shareholder.
Barring any unforeseen circumstances, the proposed acquisition is expected to be completed by the fourth quarter of 2022.
Source: The Malaysian Reserve