KUALA LUMPUR (March 13): Chemical management and storage company TMK Chemical Bhd (KL:TMK) is acquiring a land parcel with a detached factory and mezzanine office in Singapore for S$14.8 million (RM49.18 million) to support its future expansion in the city-state.

In a filing with Bursa Malaysia on Thursday, TMK Chemical said the leasehold industrial parcel measures 7,871 sq metres (sq m), while the gross floor area of the factory and mezzanine office is 5,636 sq m. As of Dec 31, 2023, the property had a net book value of S$5 million.

TMK Chemical said the acquisition of the assets from Chin Yuan Metal Pte Ltd will facilitate the expansion of its Singapore operations, as they are located close to the group's existing facilities in Tuas Avenue.

The acquisition will provide additional space to support the expansion of warehousing and distribution services in Singapore, the company noted.

TMK Chemical expects the acquisition to positively contribute to its growth and will fund the purchase through a combination of initial public offering (IPO) proceeds and internally generated funds.

The acquisition is expected to be completed by the first quarter of 2026.

TMK Chemical, which debuted on the Main Market on Dec 12 last year, saw its shares close one sen or 0.8% higher at RM1.24 on Thursday. At this price, the stock has declined 29% from its IPO price of RM1.75.