Kimlun buys Johor land from Mah Sing for RM36 million

PETALING JAYA: Kimlun Corp Bhd is acquiring two parcels of land in Johor from Mah Sing Group Bhd for a total of RM36.08 million.
The group told Bursa Malaysia today that its indirect wholly owned subsidiary Kii Ashbury Sdn Bhd had entered into a sale and purchase agreement (SPA) with Meridin East Sdn Bhd to purchase 17.90 acres of agricultural land in Plentong for RM21.83 million.
Separately, Kimlun's indirect wholly owned subsidiary Kiiville Sdn Bhd inked an SPA with Mah Sing Properties Sdn Bhd to purchase commercial land measuring 20,836.30 square metres for RM14.25 million.
Meridin East and Mah Sing Properties are wholly owned subsidiaries of Mah Sing Group.
Kimlun said the purchase consideration will be satisfied wholly in cash from internally generated funds and/or external borrowings, the breakdown of which is not finalised at this juncture.
The group said the proposed acquisitions provide an opportunity to increase the size of its land bank in strategic locations in order to enhance its future revenue and earnings. It plans to build commercial properties on the land.
Barring unforeseen circumstances, the proposed acquisitions are expected to be completed no later than the end of the fourth quarter of 2020.
On Bursa Malaysia today, Kimlun closed unchanged at RM2.30 on 87,400 shares traded. Mah Sing gained 1 sen or 0.7% to RM1.47 with 325,300 shares changing hands.