IN line with its board’s plans to expand and grow its operations, Johore Tin Bhd (JTB) proposes to undertake a diversification of its existing businesses to include property development.
Thus, JTB through its wholly-owned subsidiaries – Able Dairies Sdn. Bhd, Unican Industries Sdn Bhd and Able Development Sdn Bhd – today entered into a conditional sale and purchase agreement (SPA) with PNB Development Sdn Bhd to acquire a piece of freehold land measuring approximately 297.51 acres located at Mukim Bandar, Daerah Kuala Langat, Selangor for a total cash consideration of approximately RM169.8 mil.
The proposed land acquisition will be undertaken to restructure and expand its manufacturing operations and to undertake property development activities. The purchase consideration is proposed to be funded via internally generated funds and bank borrowings. JTB has a cash and bank balances of RM102.4 mil as of March 31.
JTB is principally involved in the manufacturing and trading of various tins, cans, and other containers and the production of milk and other dairy products. Therefore, the proposed land acquisition allows the Group to expand its income base via venturing into property development activities.
“As and when the group’s proposed development of the land materialises, it should provide the Group with an additional source of the revenue and earnings and reduce its dependence on the existing businesses,” JTB said in a statement.
Additionally, the tin cans manufacturer will utilise a portion of the land to expand its manufacturing operations as well.
“The portion of the land assigned for the existing business is sizeable and allows the group to restructure and expand its operations in the central region of Peninsular Malaysia as JTB has four factories and warehouses in the area of Teluk Panglima Garang, Selangor,” JTB pointed out.
At this juncture, the group has yet to decide on the plans for its property development business, which may include entering into a joint-venture arrangement for the development of the land among others. – June 3, 2021
