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KUALA LUMPUR (Feb 13): Oriental Kopi Holdings Bhd (KL:KOPI) has firmed up a deal to acquire the premises it currently rents as its head office and warehousing facility in Puchong for RM23 million in cash.
The deal, first proposed in June last year, was formalised via an agreement between its unit, Oriental Coffee International Sdn Bhd, and the vendor, Icon Facade Sdn Bhd, on Thursday, according to a bourse filing.
The property is a 5,260.8-square-metre leasehold parcel of land with a factory unit erected on it. Icon Facade is owned by Heng Ngeng Choo and Siau Fui Chen.
Oriental Kopi said the price-tag was reached after taking into consideration the market rate of similar-sized properties in the vicinity. It will be funded via a combination of internally generated funds and bank borrowing, the group noted.
The move is expected to generate cost savings by eliminating rental and logistics expenses, while also mitigating the risk of losing the right to use the property.
Shares in Oriental Kopi ended one sen or 0.73% lower at RM1.36 on Thursday, valuing the group at RM2.72 billion.
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