KUALA LUMPUR (Sept 4): Shipping company Shin Yang Group Bhd (KL:SYGROUP) is acquiring an 8.316-hectare industrial site in Kuching, Sarawak, for RM34 million in a related-party transaction.

In a bourse filing, Shin Yang said it had entered into a sale and purchase agreement with Forescom Plywood Sdn Bhd for the proposed acquisition.

Forescom Plywood is ultimately held by Shin Yang Holdings Sdn Bhd (SYHSB), which is also the largest shareholder of Shin Yang Group.

According to Shin Yang, the site comprises a single-storey office building, workers’ quarters, a workshop and other outbuildings. It is located within Kuching’s industrial area and near Kuching Port, and is currently leased from Forescom Plywood.

The acquisition will reduce the group’s reliance on rental arrangements and related-party transactions, Shin Yang said.

In addition, the acquisition will support Shin Yang’s expansion of its logistics business, including the development of warehouses and container depots as it seeks to provide end-to-end logistics services.

Shin Yang said it intends to fund the acquisition through a combination of bank financing and internally generated funds.

Shares of Shin Yang fell half a sen or 0.7% to 74.5 sen on Friday, giving the Sarawak-based company a market capitalisation of RM894 million.