KUALA LUMPUR (May 12): Bakery products manufacturer SDS Group Bhd is acquiring two plots of vacant agriculture and light industrial land in Johor Bahru, as part of its long-term strategic plan to expand its manufacturing facilities.

In a filing with Bursa Malaysia on Friday (May 12), the group said that its indirect wholly-owned subsidiary SDS Top Baker Sdn Bhd had entered into two separate sale and purchase agreements (SPAs) for the purpose of the acquisitions.

The first SPA was signed on April 3, 2023 with Yeap Shuh Sin and Yap Thean Mei for the acquisition of a plot of vacant agricultural land in the Mukim of Tebrau, Johor Bahru, covering an area of approximately 1.2141 hectares (ha) for a total cash consideration of RM3.267 million.

The second SPA, meanwhile, was sealed on Friday with Haiyat Property Sdn Bhd for the acquisition of a plot of vacant light industry land, also in Tebrau, covering an area of approximately 1.623ha, for a total cash consideration of RM6.114 million.

“The acquisitions are part of the group’s investment objectives, including for future expansion purposes, which is in line with the group’s long-term strategic plan of expanding its manufacturing facilities and serving the demand of its customers,” said SDS in the filing.

The acquisitions are not subject to the approval of shareholders of the company, it said. However, the transfer of the agricultural land from the vendor to SDS Top Baker is subject to the approval or consent from the state authority, said SDS.

According to SDS, the vendors for the agricultural land have made the relevant applications to procure the consent from the state authority for the transfer of the land to SDS Top Baker.

In the event of the consent not being obtained or rejected by the state, the vendors would be given a further six months to appeal accordingly to the state authority, said SDS.

The total purchase consideration for the plots of land was arrived at based on a willing buyer, willing seller basis, and mutually agreed by all parties, after taking into consideration potential development of the land and the strategic locations, said SDS.

No valuation was carried out, it said.

SDS is a new addition to the Main Market of Bursa, after having successfully transferred its listing status from the ACE Market on Monday.

For the nine-month period ended Dec 31, 2022, SDS made RM20.03 million in net profit, more than quadrupled from the corresponding period in the preceding financial year, on the back of a 51.2% jump in revenue.

SDS shares closed at 66 sen on Friday, valuing the group at RM270.36 million. Year to date, the counter had lost 10.81% of its value.