KUALA LUMPUR (March 5): Prestar Resources Bhd wants to acquire a 8,304 sq m leasehold land in Shah Alam with buildings on-site for RM19.25 million, as it expands its material handling equipment (MHE) trading and services business.

The company today inked a sale and purchase agreement (SPA) with Skyhub Technologies Bhd for the acquisition of the land, which together with the buildings, have a market value of RM20 million, based on an independent third-party valuation, according to Prestar.

Skyhub is owned by its directors Chew Ee Suan and Chew Ee Sin. Ee Suan holds 51% in the company, while Ee Sin owns the remainder 49%.

Located in Kampung Melayu Subang, Prestar said the 99-year leasehold land measuring 8,304 square metres, houses two units of single-storey semi-detached factory cum a three-storey office building, together with two guardhouses.

“The property is located in the prominent industrial estate in Kampung Baru Subang, which offers excellent business potentials due to its strategic location and accessibility. 

"The proposed acquisition is expected to expand the revenue and earnings contribution of the group, in particular for its material handling equipment (MHE), trading and services business,” Prestar, who intends to settle the purchase via internally-generated funds, said.

Shares of Prestar closed three sen or 2.97% lower at 98 sen today, giving the group a market capitalisation of RM200.57 million.