Friday 29 Mar 2024
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KUALA LUMPUR (June 9): Sern Kou Resources Bhd, a furniture manufacturer, is buying a freehold-land in Kota Bharu, Kelantan for RM6.9 million to cater for expansion purposes.

Sern Kou’s wholly-owned subsidiary Valued Products (M) Sdn Bhd successfully bidded for the property at a public auction today, the group said in a filing to Bursa Malaysia.

The industrial land, measuring 115,200 square metres, has nine buildings erected on it, comprising a total gross floor area of nearly 24,550 sq m.

Sern Kou said the property will be funded via a combination of bank borrowings and internally-generated funds, the proportion of which will be determined at a later stage, after taking into consideration its gearing level and internal cash requirement.

The acquisition, said the group, is to cater for the expanding production activities, as the property is located adjacent to Sern Kou’s forestry.

“The close vicinity of this factory enables Sern Kou Group to have better control over production costs, as well as quality of their products, leading quicker time-market, more efficiency and greater economies of scale,” it said.

The acquisition is expected to be completed by the end of this year, it added.

Sern Kou’s share price gained three sen or 3% to RM1.03 today. The counter has appreciated 63.49% year-to-date.

The group had a market capitalisation of RM121.20 million.

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