KUALA LUMPUR (June 17): Integrated Logistics Bhd is buying a 78.92-hectare freehold agricultural land in Sungai Petani, Kedah for RM24.17 million, to be developed into an industrial land to undertake solar energy ventures.
In a filing with Bursa Malaysia, Integrated Logistics said its wholly-owned subsidiary IL Power Sdn Bhd has entered into a sale and purchase agreement with Kai Sik Latex Products Sdn Bhd for the land acquisition.
Kai Sik Latex Products is wholly-owned by Chuan Huat Rubber Plantations Sdn Bhd. The company’s directors are Tan Gnear Eng, Tan Yan Hua, Tan Choo Eng and Tan Ean Khoy.
Integrated Logistics said the development plan has yet to be finalised at this juncture.
Therefore, it is too preliminary to ascertain the total development cost and the gross development value, it added.
The acquisition is to enhance the group’s future earnings and will be funded through a combination of being internally-generated, as well as through bank borrowings.
Subsequent to the acquisition, Integrated Logistics expects its gearing ratio to increase to 0.74 times, from 0.68 times at end-2018.
The group expects to complete the acquisition within the next 12 months.
Integrated Logistics’ share price fell 1.5 sen or 3.75% to 38.5 sen today, giving it a market capitalisation of RM72.73 million.