KTC acquires four land plots in Sabah for RM39.6mil
PETALING JAYA: Kim Teck Cheong Consolidated Bhd (KTC) is acquiring four parcels of land totalling approximately 15 acres within the Kota Kinabalu Industrial Park in Sabah from KKIP Sdn Bhd for RM39.59mil.
In a filing with Bursa Malaysia, KTC, a provider of market access and coverage of consumer-packaged goods, said the proposed transaction is in line with the company's strategy to strengthen and expand its distribution and logistics capabilities to support future growth.
'The parcels of land identified are strategically located and are intended to be developed into a distribution and warehouse hub to enhance the company's operational efficiency and supply chain management.
'The development of the distribution and warehouse hub will provide the company with greater control over its logistics infrastructure, reduce reliance on third-party facilities and improve cost effectiveness in the long term.'
KTC also said the acquisition is expected to support its business expansion plans and improve delivery timelines to customers across the region.
The company said the acquisition will be funded by a combination of internally generated funds and bank borrowings
'Barring any unforeseen circumstances, the board is of the view that the proposed transactions will contribute positively to the future earnings and value of the group.
'The transaction is not expected to have any material effect on the earnings and consolidated earnings per share of the company and the group for the financial year ending June 30, 2025.'
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