KUALA LUMPUR (May 28): JHM Consolidation Bhd is eyeing to acquire a piece of nine-acre land at the Batu Kawan Industrial Park in Penang for RM21.6 million as part of its expansion into the telecommunication equipment industry.
In a filing with the bourse, the engineering company said it has entered into a sale and purchase agreement with Penang Development Corp for the purchase of the land, which is currently vested in the State Authority of Penang.
“As the manufacturing operations of JHM in Sungai Petani and Kulim, Kedah are occupied for existing businesses that serve automotive and industrial industries, the acquisition is for the construction of a new operational facility for its new business segment,” it said.
The group expects the construction of the new facility to commence by the second half of 2021, subject to approval of planning permission and building plans from the relevant authorities, with the facility targeted to be completed by the second half of 2022.
JHM said the acquisition will enable the group to diversify and broaden its business into product assembly and testing for telecommunication equipment and devices, as well as other electronics-related segments including optical fibre, telco backbone switches, wireless backbone equipment, terabit ethernet equipment and other high-value electronic products.
“Barring any unforeseen circumstances, the acquisition is expected to be completed within 12 months from the date of alienation approval and consent of the State authority to transfer the land to the purchaser within six months from the date of the agreement,” it said.
JHM shares rose two sen or 1.2% to close at RM1.63, giving it a market capitalisation of RM908.9 million.
