KUALA LUMPUR (Feb 16): Careplus Group Bhd has entered into a conditional share acquisition agreement with Shin Heung Precision Co Ltd to acquire the latter's subsidiary Shin Heung Electronics Malaysia Sdn Bhd, which owns a piece of land at Oakland Industrial Park in Seremban, Negeri Sembilan.
In a filing with the bourse, the company said it intends to acquire the dormant company for a total cash consideration of RM9.31 million, given that it is the registered owner of a parcel of 2.03-acre freehold industrial land.
"The proposed acquisition is undertaken in line with the group's future and immediate expansion plans to increase its existing manufacturing capacity by commissioning new production lines for gloves.
"The property will be earmarked for warehouse and packing facilities," said Careplus.
The group said the purchase price will be satisfied in cash via internally generated funds and expects to complete the proposed acquisition by the second quarter of 2021.
It said the proposed acquisition will not have any material effect on its net assets per share, gearing or its earnings per share for the financial year ending Dec 31, 2021.
Careplus fell five sen or 2.35% today to close at RM2.08 for a market capitalisation of RM1.14 billion.