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PETALING JAYA (April 9): IT infrastructure and cybersecurity group Infoline Tec Group Bhd, is consolidating its Klang Valley operations under one roof, acquiring two adjoining three-storey semi-detached factory buildings in Sungai Buloh, Selangor, for a combined RM18,577,776 — with the properties earmarked as the group's new permanent headquarters.
The acquisition, announced yesterday (April 8) on Bursa Malaysia, and executed through wholly-owned subsidiary Infoline IT Solutions Sdn Bhd, covers Lot 10 and Lot 11 at Pekan Baru Sungai Buloh, Daerah Petaling — both 99-year leasehold parcels sitting on 787.5 sq m each, with built-up areas of 8,818 sq ft per unit.
Lot 10 was purchased from Huayi (SEA) Sdn Bhd, while Lot 11 was acquired from Orionis Technology (M) Sdn Bhd, both at RM9,288,888 apiece. The two vendors share common directors and are related parties.
Both properties were independently valued at RM9,300,000 each — or RM18,600,000 in aggregate — by VPC Alliance (KL) Sdn Bhd as at March 5, this year, using the comparison method benchmarked against recent transactions of three-storey semi-detached factories within the Kota Damansara vicinity.
The purchase consideration of RM18,577,776 represents a marginal discount to that appraised value.
The acquisition will be financed approximately 85% via bank borrowings, with the balance drawn from internally generated funds — introducing a gearing level of 0.26 times on a post-acquisition pro forma basis, against a debt-free position as at the audited financial period ending March 31, 2025.
From rented suites to owned campus
Listed on Bursa Malaysia's Main Market, Infoline currently operates from several rented premises along Jalan PJU 5/20E in Pusat Perdagangan Kota Damansara, Petaling Jaya. The new properties offer greater built-up area within the same vicinity, making the relocation less operationally disruptive.
The Sungai Buloh facilities are intended to house the group's Network Operations Centre (NOC) and CyberWatch Centre (SOC) — functions the company acknowledged are approaching capacity limits at the current premises — alongside a technology showcase centre for client demonstrations and proof-of-concept testing.
The board cited the owned-premises model as aligned with the group's longer-term objective of strengthening its corporate profile with clients, investors, and business partners. Renovation and fit-out costs are yet to be determined.
ESOS adds staff equity layer
Alongside the property deal, Infoline's board is seeking shareholder approval for a proposed Employees' Share Option Scheme (ESOS) covering up to 10% of issued share capital for eligible directors and employees. The five-year scheme — with an option for a further five-year extension — will price options at up to a 10% discount to the prevailing five-day VWAP at each award date.
Proceeds from option exercises will be channelled into working capital.
Both proposals are subject to shareholder and regulatory approvals, with completion targeted for the second half of 2026.
MBSB Investment Bank Bhd is the appointed principal adviser.
Editor’s note: This article is for informational purposes only and does not constitute financial or investment advice.
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