KUALA LUMPUR (March 18): Mobilia Holdings Bhd is planning to acquire land in Muar, Johor, for RM9.25 million to increase its manufacturing facilities in the future as part of its business expansion, according to a filing on Friday (March 18).

The 4.49-ha freehold development land is located within an industrial-use zone, about 700 metres away from Mobilia’s existing plant in Muar, Johor, according to the filing.

The land was purchased by H&S Usaha Jati Sdn Bhd (H&S) on Aug 10, 2020 for RM5.95 million but H&S has yet to complete the transfer of land title.

Mobilia said it has entered into a conditional sale of shares agreement (SSA) with H&S’ shareholders Tay Ah Hwa, Salim Laham and Tay Khee Siah to acquire the entire equity interest in H&S and the land for RM9.25 million.

The SSA is conditional on the outcome of the due diligence review and the completion of the transfer of land to H&S.

Mobilia said that the purchase price was determined on a willing-buyer and willing-seller basis after taking into consideration the market value of RM10.15 million of the land based on independent valuers Rahim & Co’s report on March 7, 2022.

On funding, Mobilia said that the purchase will be funded via a combination of internally-generated funds and bank borrowings with the breakdown of the source of funding to be determined at a later stage.

The group added that due to the close proximity, it will be able to operate its future plant efficiently and enjoy cost savings on logistics.

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

At Friday’s market close, Mobilia’s shares were unchanged at 19 sen apiece, valuing the group at RM133 million.