KUALA LUMPUR (Jan 19): LB Aluminium Bhd is acquiring two factories and an office on a 4.56-acre freehold parcel of land in Beranang, Selangor, for RM30.42 million, cash, its Bursa Malaysia filing showed on Friday. 

The group said it has entered into a sale and purchase agreement with Puspajaya Realty Sdn Bhd (PRSB) for the proposed land acquisition. PRSB is principally involved in the property development and management segments. 

According to the group, it is buying the property, which is sited next to its manufacturing operations and factories, to grow its warehouse capacity in Beranang, relocate its operations and cater for any future expansion plans.

LB Aluminium said the purchase will be financed either through internally generated funds, bank borrowings or a combination of both, depending on the group's cash reserves and future funding requirements.

The acquisition will increase its net gearing level to 0.39 from 0.31, which is derived from its audited financial statements for the financial year ended April 30, 2023, said the group. 

The proposed land acquisition is expected to be completed by the first quarter of the year, according to LB Aluminium.

Shares in LB Aluminium closed 0.5 sen or 1.10% higher to 46 sen, giving it a market capitalisation of RM200.03 million.