KUALA LUMPUR (Oct 25): PMB Technology Bhd’s wholly-owned indirect unit Everlast Access Technologies Sdn Bhd (EATSB) has inked agreements with Fujisash (Malaysia) Sdn Bhd to acquire a piece of industrial land in Penang, along with the latter’s assets, for a total consideration of RM16 million.

According to PMB’s filing with the bourse, RM13.5 million out of the total consideration will be for the purchase of the 41,799 hectare land, while the balance RM2.5 million will be used to purchase plant and machinery for the manufacturing and fabrication of aluminium-related products.

“The rationale for the proposed acquisition is to increase the production capacity of EATSB, in order to achieve economies of scale,” said the company.

PMB said the proposed acquisition will be satisfied in cash, financed through a combination of bank borrowings and internal funds, with an 80:20 ratio.

Upon acquisition, PMB said its gearing will increase to 0.79 times, compared with 0.7 times as at Dec 31, 2015.

“Barring any unforeseen circumstances, the proposed acquisition is expected to be completed within four months from the date of the agreements (i.e. Feb 25, 2017),” said PMB.

PMB closed 1 sen or 0.67% down at RM1.49, giving it a market capitalisation of RM115.45 million.