KUALA LUMPUR (Jan 13): Greatech Technology Bhd is buying 5.9 acres of leasehold land in Penang for RM13.37 million from the Penang Development Corp.
In a bourse filing, the company announced that its wholly-owned subsidiary Greatech Integration (M) Sdn Bhd (GIM) had entered into the sales and purchase agreement with the state’s development agency for the acquisition of the land, which is located in Batu Kawan Industrial Park. The purchase will be funded through internally generated funds.
Greatech intends to move GIM’s manufacturing operations in Lunas, Kedah, to the newly acquired land.
The new facility is expected to have a built-up area of 200,000 sq ft, which is an increase of 152,600 sq ft compared to the built-up area GIM current has from its five rented premises in Lunas of 47,400 sq ft. With the increase in built-up area, Greatech said it would significantly increase its capacity to cater for future orders.
The group noted that the land is close to its head office in Bayan Lepas and assembly plant in Batu Kawan, thus complementing its business operations due to its location and the ability for the company to consolidate its operations and management.
Furthermore, this will reduce its annual rental commitments by RM320,000 as well.
“The construction of the new operational facility on the land is expected to commence by the end of first quarter of 2021, subject to the approval of planning permission and building plans from the relevant authorities. The physical construction is expected to be completed by the end of 2021,” said Greatech.
The purchase is subject to the approval of the Penang State Authority to transfer the land from Penang Development Corp to GIM. All in all, Greatech is expecting the acquisition to be completed by the end of 2021.
Greatech’s share price gained 4.2% or 21 sen to close at RM5.18, translating into a market capitalisation of RM6.49 billion.
Greatech shares have risen by 325% over the past 12 months to RM5.18 today, from RM1.22 registered on Jan 14 last year. The company’s share price has been on an upward trend since it made its debut on the ACE Market in June 2019. Its share price is now 749% higher against its initial public offering (IPO) price of 61 sen.
It has transferred its listing to the Main Market of Bursa Malaysia.
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