KUALA LUMPUR (March 14): Loss-making Integrated Logistics Bhd plans to diversify its earnings base by venturing into the solar energy business, for which it intends to fork out RM30 million, cash, to acquire five adjoining parcels of agriculture land in Bukit Kayu Hitam, Kedah.

In a bourse filing today, the public bonded warehouses and shipping agent said the parcels measure about 31.11ha. It has entered into a sale and purchase agreement (SPA) with Zillion-Lite Venture Sdn Bhd for the proposed acquisition.

"The said land is currently vacant and free from any encumbrances," it said, adding the acquisition is to facilitate its plan to undertake solar energy ventures.

Zillion-Lite is a private company. Its principal business is in property holding.

The group added that the purchase price was arrived at on a willing-buyer willing-seller basis after taking into consideration the market value of the land — RM31.5 million — as appraised by independent valuer Henry Butcher Malaysia (Kedah) Sdn Bhd, vide its valuation report dated Feb 29.

It targets to complete the deal, which it intends to fund via a combination of internally generated funds and bank borrowings, in four months from the date of the SPA.

For the financial year 2015 (FY15), the shipping agent saw its net loss narrow to RM11.94 million from RM41.13 million, due to the provision for impairment in value of its investment in Hengyang Petrochemical Logistics Pte Limited (Hengyang).

Revenue for the year fell 34.7% to RM31.48 million from RM42.41 million in FY14.

According to its balance sheet, its cash and cash equivalents stood at RM120.78 million as at Dec 31, 2015, while borrowings stood at RM83.41 million.

Shares in Integrated Logistics closed unchanged at 80 sen today, valuing it at RM138.19 million.