Muar Ban Lee buys RM9.5m industrial lands, buildings in Muar to expand capacity

• “The properties are expected to provide additional space for automation, warehousing and R&D [research and development], as well as consolidate operational activities by integrating the acquired properties with the existing factory,” Muar Ban Lee said.

KUALA LUMPUR (Dec 3): Palm kernel expeller manufacturer Muar Ban Lee Group Bhd (KL:MBL) has acquired two parcels of industrial land together with existing buildings in Muar, Johor, for a total consideration of RM9.5 million, as part of its ongoing capacity expansion strategy.

MBL said the purchase will enable it to enhance production capacity, in line with increasing customer demand, according to its filing with Bursa Malaysia on Wednesday.

“The properties are expected to provide additional space for automation, warehousing and R&D [research and development], as well as consolidate operational activities by integrating the acquired properties with the existing factory,” MBL said.

The acquisition is undertaken by the group’s wholly-owned subsidiary, Muar Ban Lee Technology Sdn Bhd, which signed a sale and purchase agreement with Airegold Sdn Bhd.

Airegold is principally involved in property investment and subcontracting services relating to oil palm and other agricultural products, according to MBL.

The combined land area measures 2.262 acres, while both buildings—approximately 29-years-old—sit on 60-year leasehold titles.

MBL noted that it did not commission an independent valuation prior to the transaction, but it deemed the purchase consideration "fair and reasonable".

"The properties are directly adjacent to the company's current manufacturing facility, which significantly enhances operational integration and avoids relocation costs,” the group added.

The acquisition will be funded through a combination of internally generated funds and bank borrowings, and is expected to be completed within 90 days.

Shares of MBL closed unchanged at 34 sen on Wednesday, valuing the company at RM84.62 million. Year to date, the counter has declined more than 15%.

Unlock Malaysia’s shifting industrial map. Track where new housing is emerging as talents converge around I4.0 industrial parks across Peninsular Malaysia. Download the Industrial Special Report now.