KUALA LUMPUR (Jan 19): SKB Shutters Corp Bhd has entered into a conditional sale and purchase agreement (SPA) to acquire a 12.02-acre (48,637 sq m) leasehold industrial land in Selangor for RM54.91 million cash.

In a filing with Bursa Malaysia today, SKB Shutters said its wholly-owned subsidiary SKB Shutters Manufacturing Sdn Bhd has entered into a conditional SPA with Perbadanan Kemajuan Negeri Selangor (PKNS) to acquire the 99-year leasehold industrial land (expiring on Oct 18, 2106) in Kota Damansara.

"Barring any unforeseen circumstances, the proposed acquisition is expected to be completed within seven months from the SPA's date," SKB Shutters said.

The proposed acquisition forms part of SKB Shutters' plan to continue operation on the existing premises, and it is expected to contribute positively to the future earnings and thereby improve shareholders' value over the medium to long term, according to SKB Shutters.

The principal activity of SKB Shutters Manufacturing is manufacturing and sale of roller shutters, racking systems, storage systems and related steel products.

SKB Shutters and its subsidiary companies have since 2004 carried out their business operations in the factory, offices and such buildings that have been erected on the land.

SKB Shutters Manufacturing had on Aug 14, 2015 accepted the offer made by PKNS for the land, according to a filing dated Aug 14, 2015.

Shares of SKB Shutters were not traded today. Its latest closing price on Jan 12 was 55 sen, which valued the company at RM22 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)