KUALA LUMPUR (Sept 25): KUB Malaysia Bhd is  acquiring a piece of leasehold land in Klang for RM25 million for its business expansion.

KUB said the purchase is being undertaken by KUB Gas Terminal Sdn Bhd, which is wholly-owned by KUB Gaz Sdn Bhd, which in turn is a subsidiary of KUB.

The seller is Universal Lubricants Factory Zinol (M) Sdn Bhd.

In a filing with Bursa Malaysia, KUB said the piece of land, measuring 31,015 sq m, will be acquired using internally-generated funds.

“Located beside the existing KUB Gaz premises, the land is earmarked for potential construction of import terminal facilities, additional storage, and/or bottling facilities to support KUB Gaz's future business growth,” added the group.

KUB said the acquisition is not expected to have any material effect on its earnings for the financial year ending Dec 31, 2018, but is expected to contribute positively to KUB’s future earnings.

Barring any unforeseen circumstances, the acquisition is expected to be completed by the final quarter of year 2018.

The share price of KUB closed half a sen or 1.61% higher at 31.5 sen today, for a market capitalisation of RM175.29 million. Over the past year, the stock has fallen about 32.98% from 47 sen.