KUALA LUMPUR (Sept 15): Frontken Corp Bhd's (KL:FRONTKN) 93.4%-owned subsidiary Ares Green Technology Corp (AGTC) has won the tender for an industrial property in Tainan, Taiwan, for NT$920 million (RM118.16 million) that it was bidding for as part of its strategic plan to meet future capacity requirements.

The property is a 16,172 sq m of industrial land with seven existing factory buildings with a combined floor area of 12,611 sq m.

Located in the Tainan Xinying Industrial Zone, it is near AGTC's existing P1 facility, which Frontken said would give AGTC greater flexibility in planning for future operational requirements and support its continued business growth.

AGTC won the property through a public tender that closed on Sept 14, with the purchase consideration of NT$920 million, versus the reserve price of NT$820 million.

The purchase consideration will be funded entirely through AGTC's internal funds.

Frontken had cash and cash equivalents of RM547.31 million as at end-June this year, with no bank borrowings.

Frontkent’s share price closed down a sen, or 0.21% to RM4.80, trimming its market capitalisation of RM8.75 billion. The stock has gained 15.6% since the start of the year.