SHH buys Kajang land for RM10mil
PETALING JAYA: SHH Resources Holdings Bhd is buying 2.02ha in Kajang for RM10.24mil, which is worth roughly a quarter of its market capitalisation of RM41mil.
In a filing with Bursa Malaysia, the wood-based furniture manufacturer said its construction and property development subsidiary Rampai Pesona Sdn Bhd had signed a sale and purchase agreement with Rising Charm Sdn Bhd.
SHH said it would finance the purchase via a combination of internally-generated funds and bank borrowings.
The land has been earmarked for residential use and the company plans to convert the land for residential development.
“The rationale for the proposed acquisition is in line with SHH’s strategic plan to undertake other viable investment opportunities to enhance shareholder value in view of the current competitive furniture industry that it is principally involved in,” it said.
The company is targeting to complete the proposed acquisition in the first quarter of 2020.