Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 28): Steel-maker Prestar Resources Bhd is acquiring a 8,093 sq m freehold plot of land in Rawang for RM14.5 million to expand its pallet racking business.

In a filing with Bursa Malaysia, Prestar said its wholly-owned subsidiary Prestar Storage Systems Sdn Bhd (PSSSB) has inked a sale and purchase agreement (SPA) with GMS Purnamax (M) Sdn Bhd for the acquisition. The plot comes with a three-storey building and a single-storey warehouse built on it.

“The property is located in the prominent industrial estate in Taman Industrial Masalam and just a short distance from PSSSB’s existing manufacturing facilities in Rawang, which offers excellent business potential due to its strategic location and accessibility,” the group said.

“The proposed acquisition is expected to expand the revenue and earnings contribution of the group, in particular for its racking business through PSSSB,” it added.

Prestar said the acquisition, expected to be completed in three months after the SPA, will be funded through bank borrowings.

Prestar closed 0.5 sen or 0.97% higher at 52 sen today, giving it a market capitalisation of RM101.77 million.

Year-to-date, the counter has fallen by 51.4% from RM1.07 on Jan 2 this year.

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