Astino buys Klang land for RM60.16m to expand operations
03 May 2023
A wholly-owned company of flat steel products manufacturer Astino Bhd is buying a 884,703 sq ft piece of land in Selangor for RM60.16 million to undertake its expansion programme.
In a filing on Wednesday (May 3), the group said Astino (Malaysia) Colour Steel Sheets Sdn Bhd had entered into a sale and purchase agreement with Bukit Saujana Jaya Sdn Bhd to acquire a freehold land known as Lot 12 held under HS (D) 165115, PT No 84452, Mukim Kapar, Klang.
According to Astino, the land is currently charged to CIMB Bank Bhd as security for a loan granted to Bukit Saujana.
“This sale, purchase and transfer of the land is conditional upon the approval of the vendor’s application for subdivision/surrender and re-alienation of the land by Selangor state authorities,” it said.
Astino said it expects to pay 15% of the purchase price with its internally generated funds and the remaining 85% through bank borrowings, adding that the acquisition will not have any effects on its issued and paid-up share capital and substantial shareholders’ shareholdings.
“The acquisition is not expected to result in any material gain or loss on the company’s earnings,” it said.
Meanwhile, the purchase is expected to raise its net borrowings to RM85.57 million from RM34.57 million as at July 31, 2022, while its net gearing ratio will rise to 0.17 times from 0.07 times.
“Barring any unforeseen circumstances, the acquisition is expected to complete by Nov 1, 2024,” it noted.
Astino shares closed unchanged at 51 sen apiece on Wednesday, valuing the company at RM251.64 million.
Source: The Edge Markets
