LTKM buys 1.94-acre freehold land in KL for RM27.44m cash

LTKM buys 1.94-acre freehold land in KL for RM27.44m cash
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KUALA LUMPUR (Jan 21): Poultry farming company LTKM Bhd has proposed to acquire a parcel of freehold land in Kuala Lumpur for RM27.44 million cash.

In a filing with Bursa Malaysia today, LTKM said its wholly owned subsidiary LTK (Melaka) Sdn Bhd has on the same date entered into a sale and purchase agreement with the vendors to acquire the land located in Mukim Petaling, Kuala Lumpur, measuring approximately 1.94 acres (7,841 sq m).

LTKM said it intends to fund the proposed acquisition through internally generated funds and bank borrowings.

The exact mix of the internally generated funds and bank borrowings will be decided by the management at a later stage after taking into consideration the gearing level, interest costs as well as the internal cash requirements for the business operations of LTKM and its subsidiaries.

LTKM said the purchase consideration of the land was arrived at on a "willing buyer-willing seller" basis after taking into consideration the market value of the land of RM27.44 million based on the valuation certificate dated Jan 5, 2016, issued by an independent registered valuer Laurelcap Sdn Bhd.

"LTKM is continuously looking for investment opportunities to acquire strategic land bank and to unlock the value of the properties for further growth opportunities over the long term," the company noted.

Shares of LTKM closed three sen or 1.97% lower at RM1.49 today, for a market capitalisation of RM193.85 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)