KUALA LUMPUR (May 10): CSH Alliance Bhd’s (formerly known as KTG Bhd) electric vehicle (EV) unit has inked a sale and purchase agreement(SPA) on Tuesday (May 10) to acquire three adjoining plots of industrial land measuring 55.32 acres in Tanjung Malim, Perak for RM12 million from Minetech Resources Bhd to build an EV assembly plant.

CSH Alliance’s filing on Tuesday said that its wholly-owned subsidiary Alliance EV Sdn Bhd (AEV) had entered into the SPA with Minetech’s wholly-owned subsidiaries, Medium Visa Sdn Bhd (MVSB) and Harapan Iringan Sdn Bhd (HISB).

CSH Alliance said that AEV intends to acquire the land, using a combination of internally generated funds, bank borrowings, and/or proceeds received from the exercise of the convertible securities of the company, to set up a local CKD (Completely Knocked Down) assembly plant. 

Meanwhile, CSH Alliance said that the land acquisition is expected to be completed in the fourth quarter of 2022.

Separately in a statement, CSH Alliance’ executive director Peter Yap said the land acquisition is part of AEV’s strategic efforts in preparing and meeting the Ministry of International Trade and Industry’s (MITI) requirements to have CBU (Complete Built Up), CKD and local assembly plants in the car manufacturing sector. 

The land acquisition will enable the commencement and ensure the growth of the EV business and complement the group’s financial services business, whereby the group may offer flexible financing schemes to transportation and logistics entrepreneurs/companies to fund the purchases of EV and/or working capital, the statement added.

It is worth noting that the group and its subsidiaries are principally involved in retail, trading, manufacturing, exporting and marketing pottery, porcelain products, ceramic wares and ornaments. It is also engaged in property construction and other businesses, property investment, property development and other related services. Besides that, it also has a money lending business.
 
According to its 2021 Annual Report, the group has diversified its existing business to include manufacturing and trading of gloves and other personal protective equipment products, as well as transportation and logistics business.
 
On Tuesday, CSH Alliance shares rose half sen or 4.6% higher at 11.5 sen, valuing the group at RM158.9 million, while Minetech shares were unchanged at seven apiece, valuing it at RM83.2 million.