KUALA LUMPUR (July 13): Can-One Bhd is buying two plots of freehold land in Klang for RM103.55 million or RM35 per square feet, to be used as a new manufacturing hub and warehousing facility. 

In a filing with Bursa Malaysia, Can-One said the acquisition of the plots, measuring 68 acres, is also aimed at relocating some of the group’s operations in the Klang Valley and consolidating them in one location to improve operating efficiency. 

Can-One said the group is acquiring the plots via its indirect wholly-owned subsidiary Bintang Seribu Sdn Bhd, from Golden Valley Industries Sdn Bhd (GVI) — a subsidiary of Klanggroup Holdings Sdn Bhd. 

GVI is involved in property development, construction of buildings and non-residential building and general trading.  

“The proposed acquisition will be funded via bank borrowing, indicatively in the proportion of 80%, while the balance will be from internally-generated funds,” Can-One said. 

The group expects its net debt-to-equity ratio to increase to 67% from 61% as at Dec 31, 2019.  

It also expects the acquisition of lands to be completed within one year from the date of the SPAs. 

Shares in thinly-traded Can-One closed four sen or 1.47% higher at RM2.77 today, bringing the group a market capitalisation of RM532.26 million. The stock has rebounded 54% from its recent low of RM1.80 on March 19.