KUALA LUMPUR (Dec 29): Box-Pak (M) Bhd is leasing a piece of land in Myanmar for its expansion into the newly-opened market.

In a filing with Bursa Malaysia, the corrugated carton boxes maker said its wholly-owned subsidiary, Boxpak (Myanmar) Company Ltd, has entered into a land sublease agreement (LSA) with Myanmar Japan Thilawa Development Ltd to obtain a leasehold right over the piece of land, measuring 74,830 sq metres

The land where Box-Pak will set up a manufacturing plant is located in Thilawa Special Economic Zone, Class A Area, Yangon Region, Myanmar.

The total cash consideration payable by Boxpak Myanmar to Thilawa Development is US$5.61 million or US$75 per sq metre.

Box-Pak said the lease tenure commences from the date of execution of the LSA to June 4, 2064.

“The lease transaction is in line with Box-Pak’s strategy to expand into newly-opened Myanmar to broaden the group’s revenue base and source of earnings by setting up a new manufacturing plant to tap on the existing and new markets there,” the filing read.

“The land is strategically located near the Myanmar International Terminals Thilawa and Thilawa Railway Terminal. Thilawa also has its own power, water and internet supplies. In addition, companies located in Thilawa are given tax advantages,” Box-Pak added.

The group estimates the lease transaction to be completed by Jan 31, 2016.

Box-Pak (fundamental: 1.0; valuation: 1.7) fell one sen or 0.35% to RM2.84 today, valuing it at RM171.1 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)