PETALING JAYA: YBS International Bhd’s wholly owned subsidiary Oriental Fastech Manufacturing Sdn Bhd (OFM) has proposed to acquire Penang Science Park from Penang Development Corp (PDC) for RM24.03 million cash.
OFM today accepted the letter of offer from PDC for the deal.
The property includes a piece of industrial land together with the building erected, which comprises an area of 10.03 acres. The property is under a leasehold title and the lease has another 49 years remaining and will expire on May 19, 2068.
The proposed acquisition will be subject to a formal sale and purchase agreement (SPA) to be entered into between OFM and PDC by Feb 28, 2020.
OFM has paid the earnest deposit of RM2.4 million, being 10% of the purchase consideration for the proposed acquisition. The earnest deposit is considered as part of the purchase consideration and is only refundable in the event OFM fails to execute the SPA due to failure in obtaining the approval of Bursa Malaysia Securities and the shareholders of YBS at an EGM to be convened.
“OFM will only enter into the SPA with PDC subsequent to YBS obtaining the relevant approvals from Bursa Securities as well as its shareholders’ approval at the EGM,“ YBS said in a stock exchange filing.
The earnest deposit was funded via its internally-generated funds. The balance of the purchase consideration will be funded via bank borrowings and/or internally-generated funds, of which the exact quantum and the resultant proportion has not been ascertained at this juncture.
