Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 5): Stationery maker Chee Wah Corp Bhd is buying a piece of leasehold land measuring 6,572 sq m in Seberang Perai Utara, Penang for RM6.5 million, which will be used as warehouse space replacing its currently rented warehouse.

The piece of land currently houses two single-storey factory/warehouse buildings and a guard house with total gross floor area of 3,602.08 sq m, with a remaining 60-year lease term expiring on Sept 20, 2041.

"The saving in rental will be channelled to pay partial Chee Wah’s bank borrowing to be obtained for financing the proposed acquisition," it said in a filing with Bursa Malaysia today.

The group today signed a sale and purchase agreement with Maica Laminates Sdn Bhd for the proposed acquisition, which will be funded via a combination of internal funds and bank borrowing.

"The proportion of internal fund and bank borrowing will be decided by the board of directors at a later stage," said Chee Wah.

The acquisition is expected to complete upon Chee Wah paying the balance 90% of the consideration within three months.

Chee Wah shares closed unchanged today at 48 sen, giving it a market capitalisation of RM20.21 million.

Its share price has risen to peak at 63 sen in late August, highest since late 2007, or 70% appreciation year-to-date, after posting a return to profit following four consecutive years of losses.
 

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