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 mil in Johor Bahru, Johor.
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.
AME Elite Consortium is an integrated industrial park developer in Malaysia, specialising in providing well-managed full-service industrial parks in Johor.
In a Bursa Malaysia filing today, the company said the acquisition of the land measuring about 343,911.96 sq ft would 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 the 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.
VSIB said the new properties, which were 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.
The integrated electronics manufacturing services provider said, barring any unforeseen circumstances, the exercise was 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.
VSIB added that the purchase consideration would be funded via internally generated funds and bank borrowings whereby the ratio between internally generated funds and bank borrowings would be determined at a later date. – Oct 14, 2020, Bernama
