KUALA LUMPUR (Jan 13): Cast acrylic sheet manufacturer Asia Poly Holdings Bhd, via its unit Asia Poly Industrial Sdn Bhd (API), is buying the entire stake or 1.11 million shares in investment holding company Keng Imports & Exports Sdn Bhd (KIESB) for RM24.02 million.

Currently, KIESB holds ownership of an industrial land located in Kapar, Klang measuring 18,364 square metres.

In a bourse filing, Asia Poly said the property is strategically located approximately 800 metres from the group’s existing acrylic manufacturing plant in Meru, Klang.

KIESB will be Asia Poly’s indirectly-owned subsidiary.

Asia Poly said the acquisition will allow the group to expand its production capacity up to 3,200 metric tonnes per month to meet the growing demand from overseas customers especially from the US and Middle East.

Asia Poly said the exercise will not have a material effect on its earnings and net assets for the financial year ending Dec 31, 2022.

The acquisition, to be financed via internally generated funds and bank borrowings, is expected to contribute positively to the group’s future earnings, noted Asia Poly.

At Thursday’s (Jan 13) noon break, Asia Poly shares were down by 5.13% or one sen at 18.5 sen.

At 18.5 sen, the company has a market capitalisation of RM157.31 million.