KUALA LUMPUR (Aug 14): SKB Shutters Corp Bhd is acquiring a parcel of land in Kota Damansara, Selangor from Selangor State Development Corp (PKNS) for RM54.91 million cash.

In a filing with Bursa Malaysia today, SKB Shutters said its wholly-owned unit SKB Shutters Manufacturing Sdn Bhd has accepted an offer by PKNS for the proposed land acquisition.

Pursuant to the offer from PKNS, SKB Shutters Manufacturing has paid RM10.98 million, that is, 20% of the offer price being the refundable deposit sum and part payment for the proposed land acquisition, subject to execution of the sale and purchase agreement (SPA).

"(A) formal SPA will be prepared and executed upon the finalisation of the terms and conditions between PKNS and SKB Shutters Manufacturing. Valuation report in compliance with the Securities Commission’s asset valuation guidelines will be done in due course," said SKB Shutters.

It added that SKB Shutters Manufacturing has been occupying the factory building located on the piece of land to carry on its business activities, that is, manufacture and sale of roller shutters, racking systems, storage system and related steel products since 2002 under a 30-year lease agreement with PKNS.

SKB Shutters (fundamental: 1.55; valuation: 0.9) shares closed unchanged at 58 sen today, bringing a market capitalisation of RM23.2 million. 

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)