KUALA LUMPUR (July 23): ACO Group Bhd purchased a plot of industrial land in Johor Bahru for RM10.65 million from Plascable Polymer Sdn Bhd, to be used as its new corporate head office.
In a filing with Bursa Malaysia today, the building materials manufacturer said its subsidiary Actgen Industry Sdn Bhd inked a sale and purchase agreement with Plascable Polymer for the remaining 40-year lease term of the land.
The land contains a single-storey detached factory with a three-storey office building, a one and half-storey detached factory and a single-storey detached warehouse.
ACO said it decided to buy the property using its funds and bank borrowing, instead of the original plan of building its own facility, due to commercial reasons.
“The proposed purchase will enable the group to fast track its expansion plan, as the property will be available for immediate use upon the completion of the proposed purchase and provide substantial cost savings and time to grow and expand its business,” the group said.
The new corporate head office will house the administrative employees in one main location to increase operational efficiency, as well as accommodate more employees as part of the business expansion plan, it said.
ACO also plans to use the property as a main distribution hub for its current and future distribution centres in Johor, Selangor, Pahang and Penang, to further enhance its operational efficiency and economies of scale.
ACO’s shares closed seven sen or 15.05% lower at 39.5 sen today, giving the group a market capitalisation of RM118.5 million. Around 26.78 million shares were transacted today.