KUALA LUMPUR (June 13): LTKM Bhd, a poultry player cum property developer, is buying four adjoining leasehold lands in Seri Kembangan, Selangor, with a combined size of 2.58ha, for RM58.4 million cash, to stock up its land bank.

In a filing with Bursa Malaysia today, LTKM said its wholly-owned subsidiaries LTK Properties Sdn Bhd and LTK Development Sdn Bhd have entered into four different sale and purchase agreements for the proposed acquisitions.

Among the four parcels of land, two of them are owned by CN Asia Corp Bhd's subsidiaries, namely Chip Ngai Engineering Works Sdn Bhd and Douwin Sdn Bhd; these plots are collectively worth RM36.68 million.

The third parcel of land, currently owned by Crystal Bond Sdn Bhd, is priced at RM10.76 million, while the final parcel, owned by Marvellous Production Sdn Bhd, is being purchased at RM10.96 million.

LTKM said it will fund the acquisitions via internally generated funds and bank borrowings, while the exact mix of both funding sources will be determined later.

The group also said these lands are situated in a strategic location in the Balakong township, which not only has close proximity to a major shopping mall, but also five-star hotels, corporate offices, a medical centre, and an international school.

Therefore, LTKM said the land's potential development may include medium to high range residential and commercial buildings.

"As part of the continual search for investment opportunities, the board [has] identified the property as prime and an ideal acquisition and accumulation of strategic land bank that ultimately enhances its shareholders' values," the group said.

LTKM expects to complete the proposed acquisition in the second half of the financial year ending March 31, 2017.

LTKM fell one sen or 0.68% to RM1.46 today, giving it a market capitalisation of RM191.25 million.