KUALA LUMPUR (Sept 9): Power engineering solutions provider EI Power Bhd (KL:EIPOWER), which was listed less than four months ago on the ACE Market, is acquiring a freehold property in Bandar Glenmarie, Shah Alam for RM17.2 million to serve as its new headquarters.

In a bourse filing, the company, which is also a subsidiary of telecommuniations network services and infrastructure provider OCK Group Bhd (KL:OCK), said its unit had entered into a sale and purchase agreement with Elitesoft Asia Sdn Bhd for the acquisition.

The property is a 1,495.09 sq m piece of freehold land with a 2½-storey semi-detached factory erected on it.

EI Power said the acquisition is in line with its expansion plans, as the company currently operates from rented office and storage premises in Selangor.

The acquisition would provide additional office and warehouse capacity to accommodate its growing workforce, storage needs and operations, while reducing its long-term reliance on rented premises, it said.

It intends to fund the acquisition using RM15 million from its IPO proceeds that was earmarked for the acquisition and setup of its new headquarters and warehouse; the remaining RM2.2 million will internally funded.

The company also plans to carry out renovation and fit-out works, which will be funded by up to RM3.3 million of IPO proceeds earmarked for the renovation of the new facility. Any shortfall will be borne using internal funds.

EI Power expects the acquisition to be completed within three months.

Shares of EI Power rose two sen or 2.6% to end at 79 sen on Wednesday, giving the company, which was listed on May 21, a market capitalisation of RM553 million. The counter has gained more than 64% from its IPO price of 48 sen.

OCK holds a combined 57.58% stake in EI Power.