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PETALING JAYA (April 18): WTEC Group Bhd's wholly-owned subsidiary WTEC Sdn Bhd has entered into a letter of offer to purchase a detached factory with office in Bandar Rinching, Semenyih, Selangor for a total consideration of RM10.80 million cash.
In a Bursa Malaysia filing yesterday (April 17), WTEC Group said the letter of offer was signed on April 17, 2026 with the vendor, Athens Park Machineries Sdn Bhd (APMSB), a company principally involved in trading and rental of construction machineries.
APMSB was incorporated in Malaysia on Feb 10, 2015 and has an issued share capital of RM300,000.
The property is a detached factory with office held under HSD 116275, PT28724, Mukim Semenyih, Daerah Hulu Langat, Selangor, bearing the postal address No 13, Jalan 6/9, Seksyen 6, Bandar Rinching, 43500 Semenyih, Selangor.
The purchase consideration of RM10.80 million will be paid in three tranches: an earnest deposit of RM216,000 (2%) upon execution of the letter of offer; a balance deposit of RM864,000 (8%) upon execution of the sale and purchase agreement (SPA); and the remaining balance of RM9.72 million (90%) within three months from the date of the SPA. The SPA is targeted to be signed by the second quarter of 2026.
The letter of offer is conditional upon three pre-conditions being fulfilled within one month from the execution date: (i) an independent consultant confirming the property was built in accordance with approved building plans and laws; (ii) the vendor procuring a valid Fire Certificate from the Fire and Rescue Department of Malaysia; and (iii) WTEC being satisfied with the results of its due diligence investigation on the property, including title, zoning, environmental matters and legal documentation.
WTEC Group said the acquisition is in line with its expansion plan disclosed in its initial public offering (IPO) prospectus dated April 9, 2025, under which the company intends to consolidate its manufacturing operations from four existing facilities into a single new factory located in Kajang or Semenyih, Selangor.
The consolidation is expected to enable more efficient management of manufacturing operations and quality control, while reducing transportation costs and shortening processing and production lead times.
The purchase consideration will be funded via allocated IPO proceeds, internally generated funds and/or bank borrowings.
The proposed acquisition is not expected to have any material effect on the company's earnings per share, net assets per share or gearing for the financial year ending Dec 31, 2026, and does not require shareholder approval.
None of WTEC Group's directors, major shareholders or persons connected with them has any direct or indirect interest in the transaction.
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