KUALA LUMPUR (Oct 28): SkyGate Solutions Bhd (KL:SKYGATE), formerly known as Ewein Bhd, is selling one of its factories in Penang to Danish medical device firm Ambu AS for RM39.8 million.

A conditional sale and purchase agreement was inked between SkyGate’s 98%-owned unit SkyGate Integration Sdn Bhd and Ambu Sdn Bhd for the sale of the 1.8-acre leasehold land together with a factory building, the precision engineering and industrial property firm said in a bourse filing on Tuesday.

The company said the property sale is to generate capital to reinvest in high-growth projects to enhance its profitability. A breakdown of the utilisation of proceeds was not disclosed.

SkyGate said the RM39.8 million price tag was based on prevailing market conditions, and on a willing-buyer, willing-seller basis after taking into consideration the strategic location of the land. It said no valuation exercise was carried out.

It should be noted that SkyGate Integration acquired the factory in Bayan Lepas, Penang, for RM15.2 million back in April 2017.

The deal is expected to be completed by July 2026, the company added.

Ambu, which was founded in Denmark in 1937, is a global medical device company that develops single-use endoscopy, diagnostic and life-supporting equipment.

SkyGate increased its stake in SkyGate Integration from 51% earlier this year via the purchase of an additional stake from SkyGate Integration’s founder Ong Chee Fui for RM9.8 million via a share issuance deal, completed in August this year.

It acquired its initial 51% stake in SkyGate Integration for RM10.71 million in cash back in May.

The remaining 2% in SkyGate Integration is owned by Sharp Capital Sdn Bhd, which is owned by Lee Koh Yung. 

Shares in SkyGate ended 1.5 sen or 1.88% lower at 78.5 sen on Tuesday, valuing the company at RM263.61 million.