KUALA LUMPUR (Oct 8): Brite-Tech Bhd’s wholly-owned subsidiary Brite-Tech Corp Sdn Bhd (BCSB) has entered into two sale and purchase agreements with HST Development Sdn Bhd and Damai Properties Sdn Bhd to acquire two pieces of land in Kapar, Klang, Selangor, for RM10.26 million.

In a filing with the bourse, Brite-Tech said both pieces of land — measuring 4,414 square metres each — would be acquired for RM5.13 million each.

It said the acquisitions will be funded via a combination of bank borrowings and internally-generated funds, although the exact breakdown between the sources of funding will be determined by the management of BCSB at a later date.

“The proposed acquisition represents an opportunity for the Brite-Tech group to accumulate strategic industrial land for property investment and/or development purposes.

“The two pieces of land are situated in a prime location, where all necessary infrastructure is readily available with positive industrial development potential within the Klang area,” said the group.

It added that the area has become an attractive industrial locality in Selangor, due to its close proximity to Port Klang and good accessibility.

The acquisition is not expected to have any material impact on the earnings and net assets per share of the group for the current financial year ending Dec 31, 2020.

Assuming that 80% of the purchase price is financed through bank borrowings, Brite-Tech said the proposed acquisition will increase its gearing ratio from 0.14 to 0.24 times.

“Barring any unforeseen circumstances, the estimated time frame for completion of the proposed acquisition is within three months from the date of the sale and purchase agreements,” it said.

Brite-Tech shares fell 3.5 sen or 7.14% to 45.5 sen, translating into a market capitalisation of RM114.66 million.