KUALA LUMPUR (June 9): Supermax Corp Bhd is buying a 2.02ha plot of land in Klang, Selangor for RM21.78 million for the future expansion of the group’s manufacturing capacity, it said in a bourse filing today.
Its wholly-owned unit Maxter Glove Manufacturing Sdn Bhd yesterday entered into a sale and purchase agreement with two individuals, Goh Chee Seong and
Lee Ah Mooi, for the freehold land in Meru, near its existing cluster of manufacturing plants.
"While the valuation report for the adjoining land supports a market value of RM19.7 million, a higher valuation was accorded to the final purchase consideration of RM21.78 million after also taking into account the synergies and efficiencies to be gained from an enlarged integrated manufacturing complex," the group said.
Supermax currently owns several contiguous pieces of land in Meru.
The proposed acquisition of the adjoining land and the subsequent development on the land, it said, will facilitate ease of managing the entire operations within one location, besides increasing its manufacturing capacity.
Supermax said the deal will be funded through internal funds and bank borrowings.
Shares in Supermax closed 2.59% or 23 sen lower at RM8.65 today, with 24.59 million shares changing hands. This gave the rubber glove maker a market capitalisation of RM11.77 billion.