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PETALING JAYA (Sept 11): PTT Synergy Group Bhd said its wholly owned subsidiary, PTT Logistics Hub 3 Sdn Bhd, has entered into a sale and purchase agreement (SPA) with Lee Mooi Khean to acquire a 3.925-hectare (9.70-acre) parcel of freehold land in Seberang Perai Selatan, Penang, for RM62.53 million.
In a Bursa Malaysia filing on Friday (Sept 11), PTT said the SPA was entered into on the same day for the land identified as Geran 77766, Lot 1597, Mukim 12, Daerah Seberang Perai Selatan, Negeri Pulau Pinang.
The RM62.53 million consideration will be funded through a combination of internally generated funds and bank borrowings. PTT said the final funding mix will be determined at a later date after considering the group’s gearing level, interest costs and working capital requirements.
The land is currently vacant, freehold and free from encumbrances, with Lee Mooi Khean as the registered proprietor. PTT said it will hold the land as an investment property, with potential for future development in line with its business expansion plans.
Land earmarked for future development
PTT said the proposed acquisition forms part of its long-term growth and expansion objectives. The land is intended to support potential future development and operational requirements, with the acquisition expected to strengthen the group’s asset base and facilitate the continued growth and expansion of its business over the medium to long term.
The purchase consideration was determined on a willing-buyer, willing-seller basis, taking into consideration the rationale and prospects of the acquisition as well as indicative asking prices of comparable land in the surrounding area.
Based on PTT’s assessment, the purchase price is within the prevailing market range for land in the locality.
Completion expected by 1Q2027
Under the SPA, PTT Logistics Hub 3 is to pay a total deposit of RM6.25 million. This comprises an earnest deposit of RM625,275.55 paid on June 5 and RM1.25 million deposited with the vendor’s solicitors as stakeholder on Aug 26, while a further RM4.38 million is payable upon signing of the SPA.
The balance purchase price is to be remitted to the vendor’s solicitors as stakeholder within six months from the SPA date or, where applicable, within a one-month extended completion period, subject to agreed interest. The land is to be acquired on an “as is where is” basis, free from encumbrances, with legal possession deemed delivered on completion.
Subject to the fulfilment of all conditions under the SPA and barring unforeseen circumstances, completion is expected by the first quarter of 2027.
PTT does not expect the acquisition to have any material effect on the group’s earnings or consolidated earnings per share for the financial year ending June 30, 2027, or on its net assets. Its impact on gearing will depend on the eventual funding mix.
The proposed acquisition does not require approval from PTT shareholders or regulatory authorities. Its highest applicable percentage ratio is 22.01%, calculated under Paragraph 10.02(1)(g) of Bursa Malaysia’s Main Market Listing Requirements based on PTT’s latest audited consolidated financial statements for the financial year ended June 30, 2025.
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