KUALA LUMPUR (Nov 2): Pekat Group Bhd (KL:PEKAT) is acquiring six adjoining freehold industrial plots in Nilai, Negeri Sembilan, from Sime Darby Property Bhd (KL:SIMEPROP) for RM30.58 million.

Its indirect 60%-owned subsidiary, EPE Switchgear (M) Sdn Bhd, entered into six separate sale and purchase agreements with Sime Darby Property (Nilai) Sdn Bhd, a wholly owned subsidiary of Sime Darby Property, on Oct 30 for the acquisition of the plots, which have a combined land area of 38,108 sq m. 

The plots form part of the Bandar Hamilton Nilai — Plot 5 industrial development and are designated for industrial use, according to the group's bourse filing.

Pekat said the acquisition would support the group's expansion plans, as EPE Switchgear's existing premises in Nilai do not have sufficient capacity to accommodate its planned growth.

The land will be used to house EPE Switchgear's existing switchgear manufacturing operations, as well as the group's battery energy storage system, transformer and substation businesses. The acquisition will also provide the group with long-term security of tenure for its operations.

The purchase consideration will be funded through internally generated funds and/or bank borrowings, the group said.

Vacant possession of the land is expected to be delivered within 48 months from the date of the sale and purchase agreements (SPAs), upon which the acquisition is expected to be completed.

As at end-June 2026, Pekat had cash and bank balances of RM81.68 million, alongside RM1.1 million in fixed deposits with licensed banks, while total borrowings stood at RM180.6 million. 

At Monday’s noon break, shares of Pekat were down eight sen or 2.73% at RM2.85, valuing the group at RM2.02 billion.