KUALA LUMPUR: Pekat Group Bhd is acquiring six adjoining plots of industrial land in Nilai, Negri Sembilan, for RM30.58 million to expand its manufacturing and energy-related businesses.
The acquisition will be undertaken by its indirect 60 per cent-owned subsidiary, EPE Switchgear (M) Sdn Bhd, from Sime Darby Property (Nilai) Sdn Bhd, a wholly-owned subsidiary of Sime Darby Property Bhd.
In a filing with Bursa Malaysia today, Pekat said the six freehold plots have a combined land area of 38,108 square metres and form part of the Bandar Hamilton Nilai – Plot 5 industrial development.
“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 business,” it said.
The RM30.58 million net purchase consideration was negotiated on a willing-buyer, willing-seller basis, after deducting RM2.25 million in rebates from the original purchase price of RM32.82 million.
The rebates comprise an early-bird rebate of three per cent, a special bulk purchase rebate of two per cent and an early-signing rebate of two per cent, calculated successively.
The purchase will be funded through internally generated funds and/or bank borrowings.
Under the six sale and purchase agreements signed on Oct 30, Sime Darby Property (Nilai) will undertake infrastructure works, including earthworks, external drains, water and sewerage reticulation, telecommunications facilities and main access roads.
The subsidiary is required to deliver vacant possession of the land within 48 months of the dates of the agreements.
It will be liable to pay liquidated damages at 10 per cent per annum on the net amount paid by EPE for any delay in delivering vacant possession, subject to the terms of the agreements.
EPE is required to begin construction of an industrial building on each plot within 36 months after the infrastructure construction period ends.
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, except for any financing costs arising from borrowings.
However, its gearing may increase if bank borrowings are used to fund the acquisition.
The acquisition does not require shareholders’ or regulatory approval, except for state authority consent for the transfer of two plots, if required.