Tasco to buy Port Klang land to scale up cold chain warehousing ops

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KUALA LUMPUR (May 10): Total logistics solutions provider Tasco Bhd is buying seven parcels of leasehold industrial land measuring a combined 16.3 acres in Port Klang, Selangor for RM25.83 million.

Tasco said the proposed acquisition provides the group with the opportunity to acquire a sizeable landbank with existing warehousing facilities strategically located in Port Klang, which is the country's busiest container ports and can be easily accessed to and from various expressway connection.

"The assets are also in close proximity to Tasco’s Port Klang Logistics Centre, which provides convenience for the management of Tasco to easily manage the warehousing operations in both locations," it said tn a filing with Bursa Malaysia today.

"The temperature-controlled warehouses on the assets would provide Tasco with the opportunity to scale up its cold chain warehousing operations, which are currently operating at full capacity," it added. 

Tasco said its two subsidiaries Gold Cold Solutions Sdn Bhd and Titian Pelangi Sdn Bhd had today entered into a sale and purchase agreement with Hai San Holdings Sdn Bhd (HSH) and Hai San & Sons Sdn Bhd (HSS), which are heading towards liquidation, for the proposed acquisition.

Tasco said it was selected as the winning bidder of the assets through a tender process initiated by the liquidators of HSH and HSS. Ong Hock An of BDO Consulting Sdn Bhd has been appointed as liquidator of both the companies.

The audited net book value of the assets have not been provided to Tasco.

It added that the purchase consideration is expected to be funded via a combination of bank borrowings and/or internal funds.

Barring any unforeseen circumstances, the proposed acquisition is expected to be completed in the second half of the year. 

Tasco shares closed up one sen or 0.72% at RM1.40 today, with  21,500 shares done, bringing a market capitalisation of RM280 million.