Wentel Engineering proposes to buy RM29.6m Johor factories from founder

KUALA LUMPUR (March 19): Wentel Engineering Holdings Bhd (KL:WENTEL) has proposed to acquire two medium industrial semi-detached factory units in Johor for RM29.58 million in a related-party transaction.

The vendor, Twin Galaxy Development Sdn Bhd, is owned by Wencor (M) Sdn Bhd, an entity controlled by Wentel’s founder and substantial shareholder Wong Kim Fatt and his spouse Loo Sok Ching. Kim Fatt is the father of Wentel’s executive director Wong Chun Wei and the brother of non-independent non-executive chairman Ban Kim Wah.

Wentel said the factories, located in Tebrau, Johor Bahru, are intended to house a dedicated finishing facility for products fabricated at its upcoming plant nearby in Kawasan Perindustrian Selatan (Lot 815). The finishing processes — buffing and surface coating — will be carried out separately to free up fabrication space, reduce contamination risks, and meet customer expectations for standalone finishing operations, it said.

The properties, located just 0.5km from Lot 815, were identified for their strategic proximity, the group said, which will enable seamless integration with fabrication activities and minimise logistical lead times.

The group expects the arrangement to enhance production efficiency, improve capacity and strengthen its appeal to new customers, particularly in industries such as machinery and equipment manufacturing, semiconductor machinery and medical devices.

The group added that Lot 815 is scheduled to commence operations in the second half of 2026, with Wentel relocating its current operations from Lot 58 while continuing to run facilities at Lot 11 and Lot 81.

The proposed acquisition is expected to be completed by the first quarter of 2029, subject to approval from non-interested shareholders at an extraordinary general meeting (EGM).

Shares in Wentel closed up 0.5 sen or 2.1% at 24 sen on Wednesday, valuing the company at RM276 million. Over the past one year, the stock has fallen 9.4%.

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