KUALA LUMPUR (Feb 12): Ajinomoto (Malaysia) Bhd is buying a piece of freehold land measuring 2.03 million sq ft in Techpark @Enstek in Seremban, Negeri Sembilan, from Lembaga Tabung Haji for RM86.08 million to grow its operations and expand its manufacturing facilities.
In announcing the planned purchase to Bursa Malaysia today, Ajinomoto said it intends to develop and construct new manufacturing facilities on the property, which would strengthen the group’s efficiency and competency in providing quality products to customers. It said the land purchase would be funded through available cash. As for the total development costs of the new facilities, which it said is still too early to ascertain, those are expected to be funded using internal funds and/or bank borrowings.
In the bourse filing, Ajinomoto said it entered into a sale and purchase agreement with the pilgrims’ fund and the fund’s designated vendor, THP Enstek Development Sdn Bhd, for the purchase. The land comprises four contiguous lots, and a strip of land meant to be a road reserve between two plots of those lots.
The purchase consideration was decided on a “willing-buyer willing-seller” basis after considering the land’s market value at RM41 per square foot as at Feb 6, 2018, by independent registered valuer Messrs Jordan Lee & Jaafar Sdn Bhd. Ajinomoto expects the proposed land buy to be completed by July 31, 2019. At 3.04pm, Ajinomoto shares rose 36 sen or 1.83% to RM19.98 with 26,000 shares done for a market capitalisation of RM1.18 billion.