KUALA LUMPUR: Industrial process machinery and equipment maker Eonmetall Group Bhd
and its joint venture partners have agreed to acquire 450 acres of land in Klang from Sime Darby Plantation Bhd for RM155.7mil.
Eonmetall, through unit Eonmetall Land Sdn Bhd has a 23.81% stake in the joint venture (JV) company - Sinaran Seribumi Sdn Bhd.
Its partners Kapar Holding Sdn Bhd has a 40.95% stake, while Kapar Land Sdn Bhd owns the remaining 35.24% share.
"The shareholding proportions reflect the intended sub-division of the land eventually amongst the JV parties," Eonmetall said in a filing with Bursa Malaysia today.
Based on its equity stake in the JV company, Eonmetall's capital outlay for its share of 100 acres of land amounted to RM37.14mil.
"The group believes that the land is situated strategically to appeal to a wide spectrum of prospective purchasers due to excellent public infrastructure, proximity to Port Klang, Selangor for export market as well as proximity to domestic market," it said.
"At an appropriate time as determined by the JV parties, Sinaran will work towards obtaining permission for sub-division and thereafter transfer the subdivided lots to the JV parties," it added.
Eonmetall said the group's long-term growth plan includes relocation of certain business activities to Port Klang.
The move, the company said, is to minimise operational costs in connection with the nature of the group’s export business as well as to improve overall effective cost management.
"The intention of the group to establish manufacturing cum warehouse facility to accommodate future expansion of business activities in the central region," it said.