KPS Consortium unit to acquire leasehold industrial land in Klang for RM30 mil

• The property includes a factory building, and according to KPS Consortium, the acquisition is intended for investment purposes.

KUALA LUMPUR (Aug 20): Manufacturer of tissue-related products KPS Consortium Bhd  entered into an agreement to acquire a parcel of leasehold industrial land measuring 16,363 sq m in Klang, Selangor, from Pelangi Technowood Sdn Bhd for a cash consideration of RM30 million.

In a bourse filing on Tuesday, the property includes a factory building, and according to KPS Consortium, the acquisition is intended for investment purposes.

The acquisition will be undertaken through KPS Consortium’s wholly-owned subsidiary, KPS Plywood Sdn Bhd, which is engaged in the trading of plywood, cement, timber products, as well as investment holding. The vendor, Pelangi Technowood Sdn Bhd, is fully owned by Low Peng Sian @ Chua Peng Sian.

The company said the purchase will be funded through a combination of cash and bank borrowings, with borrowings proposed to account for 60% of the total consideration.

It added that the acquisition is not expected to have any material impact on the group’s earnings per share, net assets per share, gearing, share capital or substantial shareholders’ direct and indirect shareholdings for the financial year ending Dec 31, 2025.

For the first quarter ended March 31, 2025, KPS Consortium recorded a net profit of RM79,000, down from RM3.67 million in the corresponding quarter last year. Revenue also declined to RM219.37 million from RM305.41 million previously.

The group attributed the lower performance in part to its paper milling division, where turnover fell to RM2 million from RM6.5 million a year earlier.

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