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PETALING JAYA (Sept 23): Carimin Petroleum Bhd (KL:CARIMIN) plans to acquire an industrial property in Sejingkat, Kuching, for RM21.12 million to revive galvanising and metal fabrication operations at the site.
In a Bursa Malaysia filing on Wednesday (Sept 23), Carimin said its 90%-owned subsidiary Sri Borneo Energy Sdn Bhd (SBE) signed a sale and purchase agreement on Sept 14 with Sarwaja Timur Sdn Bhd, which is in liquidation.
The property comprises about 7.246ha of leasehold land at Lot 342 Block 8, Muara Tebas Land District, Jalan Kampung Sejingkat, off Jalan Bako. It includes a factory, two fabrication shops, a galvanising plant, an office and storage yards. The lease expires on Nov 6, 2049.
The land title currently restricts its use to a dockyard. SBE’s proposed manufacturing, fabrication, assembly and galvanising activities are subject to the necessary approvals and compliance with the title conditions.
The acquisition is also conditional on written consent from the Sarawak minister responsible for land for the property transfer. SBE has six months from the agreement date to pursue that consent, with an automatic three-month extension if needed. If consent remains unobtained when the applicable period ends and the parties agree to no further extension, the agreement will terminate and payments made by SBE will be refunded.
Carimin said it expects to fund about 90% of the purchase price and related expenses through bank borrowings and the rest through internally generated funds, subject to finalising the funding mix. Its gearing is expected to rise from 0.12 times to 0.21 times.
The property will be acquired on an “as is where is” basis with vacant possession. Existing charges over it are to be redeemed and discharged under the agreement.
Carimin said the acquisition is not expected to have a material immediate effect on earnings for the financial year ending June 30, 2027, apart from transaction expenses, financing costs and any contribution after completion. Subject to the agreement’s conditions, it expects completion within 12 months of signing if the automatic extension is required.
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