KUALA LUMPUR (Oct 6): Lysaght Galvanized Steel Bhd will acquire leasehold land in Perak measuring about 8,152 square metres in area together with a factory and an office, for RM3.6 million to facilitate future expansion.

Its filing with Bursa noted that the acquisition of the land which is adjacent to the Group’s existing galvanizing plant will enhance the production flow.

The Group has entered into a sale and purchase agreement with Cheong Chiew Leong, Cheong Chiew Yuen and Ng Weng Noi for the acquisition of the land together with a factory and office today.

The purchase price was arrived at on a “willing buyer, willing seller basis” in an  arm’s length transaction after taking into consideration the valuation carried out by valuer, Messrs Muthu & Lee, which adopted the comparison method that consider recent sales of similar properties in the vicinity.

According to the note filed with Bursa, the proposed acquisition will be funded from existing internal funds.

It added that the completion of the agreement falls on the expiry of three months upon the fulfilling of all the conditions precedent and is expected to be completed by the first quarter in 2018.

As of closing, Lysaght’s share price slipped by 1.38% to RM3.57 with only about 9,400 shares traded, giving it a market capitalization of RM148.4 million.