KUALA LUMPUR (Aug 5): Teo Seng Capital Bhd's indirect unit Great Egg Industries Sdn Bhd is buying a freehold industrial land measuring 0.61 hectares in Batu Pahat, Johor, from two directors of its subsidiaries to build a new factory.

According to a bourse filing today, Great Egg has signed a sale and purchase agreement with Lim Meng Bin and Ng Eng Leng to acquire the land for RM1.64 million cash.

Lim is the director of various subsidiaries of Teo Seng while Ng is the director of Great Egg and other various subsidiaries of Teo Seng. They are the registered owners of the land.

The duo bought the tract on Sept 19, 2007 and the total cost of investment was RM434,971.44 as at June 30, 2016.

"The valuation report for the land dated July 22 was done by One Asia Property Consultants (KL) Sdn Bhd, an independent valuer with market value of RM1.7 million," the poultry farming company said.

Teo Seng intends to build a new factory to accommodate pasteurised liquid egg machine and hard-boiled egg machine in line with its downstream expansion project.

The announcement said Ng will abstain from board deliberation and voting on resolution(s) pertaining to the proposed land acquisition.

Barring unforeseen circumstances, Teo Seng targets to complete the acquisition in the third quarter of 2016.

Teo Seng's share price dropped one sen or 0.83% to close at RM1.20, for a market value of RM359.67 million.