KUALA LUMPUR (Nov 3): Greatech Technology Bhd and Pentamaster Corp Bhd announced Wednesday that they are acquiring land in Batu Kawan Industrial Park on Penang's mainland from Penang Development Corporation (PDC) for expansion.

Greatech said in a bourse filing that its wholly-owned subsidiary Greatech Integration (M) Sdn Bhd had entered into a sale and purchase agreement (SPA) with the PDC for the acquisition of a piece of leasehold land in the industrial park with land area measuring approximately 11.57 acres for a total purchase consideration of RM27.73 million.

The purchase consideration will be satisfied by its internally-generated funds.

According to Greatech, the acquisition of the land is for the construction of a new operational facility for capacity expansion plan.

“This is a strategic move for Greatech and its subsidiaries as the land is close to Greatech’s head office in Bayan Lepas and assembly plant in Batu Kawan, [Penang].

“This complements Greatech’s business operations due to its location and accessibility and facilitates the consolidation of the Greatech’s operations and management,” it said.  

The construction of the new operational facility on the land is expected to commence by the first quarter of 2022.

The physical construction is expected to be completed by the third quarter of 2022.

“The proposed construction of the facility is expected to have a built-up area of 265,000 square feet. The increased built-up area would also enable Greatech to significantly increase its capacity to cater for future orders.

“Premised on the above, the board is of the opinion that the acquisition of land will contribute positively to the business operations of Greatech,” it said.

The acquisition of land is expected to be completed by end of 2022.

In a separate filing, Pentamaster said its unit Pentamaster Equipment Manufacturing Sdn Bhd has entered into an SPA with the PDC for the proposed acquisition of a piece of leasehold land measuring approximately 11.8 acres in the industrial park for a total cash consideration of RM28.28 million, which will be financed through the company’s internally generated funds.

“The proposed acquisition will increase the group’s engineering and manufacturing capacity, specifically to cater for its expansion into the factory automation solution and medical segment,” said Pentamaster.

The proposed acquisition is expected to be completed in the fourth quarter of the financial year ending Dec 31, 2021.

Greatech fell two sen or 0.28% to RM7.18 on Wednesday, valuing the group at RM8.88 billion. Year-to-date, the counter has soared 52.77%.

Meanwhile, Pentamaster closed seven sen or 1.26% higher at RM5.62, valuing the group at RM3.84 billion. Year-to-date, the counter has risen 9.34%.