KUALA LUMPUR (May 11): Careplus Group Bhd said it is acquiring a piece of land in Oakland Industrial Park, Seremban for RM35.5 million cash from Rapid Synergy Bhd.

The glovemaker's wholly-owned unit Careplus Properties Sdn Bhd is buying the land measuring 40,680 sq m (10.05 acres) from Rapid Synergy’s wholly-owned unit Rapid Mall Sdn Bhd.

“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,” Careplus said in a bourse filing.

"The property will be earmarked for warehousing, gloves packing facility as well as the Careplus’ future operational needs,” it added.

The nine-year-old structure on-site is a purpose-built single-storey retail complex with a mezzanine floor, Careplus said, adding that the transaction should be completed by end-2021.

Separately, Rapid Synergy said the price consideration took into account the market value of the property at RM43 million. The company had acquired the asset for RM25.1 million, and its book value stood at RM31.97 million, it said.

It added that the proceeds will be used largely for working capital and repayment of borrowings (RM29.65 million).

Shares of Careplus Group were up seven sen or 3.06% to RM2.36, valuing the company at RM1.3 billion.