KUALA LUMPUR (Feb 4): Steel manufacturer Ann Joo Resources Bhd (KL:ANNJOO) said it is acquiring the remaining 45% equity interest in Konsortia Etiqa Sdn Bhd (KESB), the owner of 437 acres of industrial land in Kedah, for RM96 million.

It is acquiring the stake through its wholly owned subsidiary, Ann Joo Management Services Sdn Bhd (AJMS), from KESB director Datuk Ong Tee Thong, according to a Bursa Malaysia filing on Tuesday.

Upon completion, AJMS will hold 96% of KESB, with the remaining 4% retained by another subsidiary, Ann Joo Steel Bhd.

Ann Joo said the acquisition aligns with its broader strategy to streamline its management operations and align ownership interests within KESB and its subsidiaries. By fully controlling KESB, Ann Joo aims to enhance decision-making efficiency and drive future growth.

The group said KESB’s land, located in Gurun Industrial Park and equipped with industrial facilities including a 275kV main intake substation, is well-positioned to tap on the significant growth of the industrialisation in the northern Peninsular Malaysia region.

"The northern region is expected to continue attracting large-scale investments from major industry players in the semiconductor, electrical and electronics, and automotive sectors to set up their manufacturing plants," it said.

For the financial year ended Dec 31, 2023, KESB recorded a consolidated profit before taxation of RM170.51 million with total assets of RM351.30 million.

The acquisition is funded entirely through internally generated funds and will not affect Ann Joo's share capital structure. Upon completion, the group’s net assets are projected to rise to RM1.29 billion, from RM1.20 billion previously, translating into an increase in net assets per share to RM2.29 from RM2.14 at present.

The acquisition is expected to be completed by the first quarter of 2025.