KUALA LUMPUR (May 15): NCT Alliance Bhd (KL:NCT) is expanding its land bank in Kuala Langat, Selangor, with plans to develop an industrial project with an estimated gross development value (GDV) of RM1.5 billion.

The group is acquiring an 80% stake in landowner Semanja Murni Sdn Bhd (SMSB) for RM53 million. SMSB owns 176.7 acres of land in Kuala Langat.

According to NCT’s filing, the land is located adjacent to its existing NCT Smart Industrial Park (NSIP) and is earmarked for integration into the broader development. The project is expected to form part of a larger master-planned industrial ecosystem, it said.

The shares acquisition will be undertaken by its wholly owned unit NCT World Sdn Bhd (NCTW), which has entered into a conditional share subscription and shareholders’ agreement with SMSB’s existing shareholders, See Cherng Jye and Datuk Seri Sim See Hua.

Under the deal, NCTW will subscribe for eight new ordinary shares in SMSB for RM53 million, funded via internal funds and/or bank borrowings. The exercise is expected to be completed within nine months, after which the existing shareholders’ total stake will be diluted to 20%. 

SMSB, an investment holding company based in Pudu, Kuala Lumpur, recorded a net loss of RM9.07 million for the financial year ended June 30, 2025, while holding RM93.72 million in cash with no borrowings. 

NCT noted that part of the acquisition may be financed through borrowings, exposing it to interest rate fluctuations and higher financing costs. It said it will actively manage its debt levels, interest costs and cash flows to mitigate these risks.

As at end-December last year, NCT had RM47.9 million in cash and bank balances, with long-term borrowings of RM247.97 million and short-term borrowings of RM71.77 million.

Shares of NCT closed unchanged at 58 sen on Friday, giving it a market capitalisation of RM1.23 billion. Year to date, the counter has fallen over 6%.