KUB buys leasehold land in Klang for RM25mil

PETALING JAYA: KUB Malaysia Bhd has bought 7.66 acres of leasehold land in Klang for RM25mil.

In a filing with Bursa Malaysia yesterday, the company said its subsidiary had entered into a sale and purchase agreement with Universal Lubricants Factory Zinol (M) Sdn Bhd for the land acquisition.

KUB said the proposed acquisition was to expand its subsidiary KUB Gaz Sdn Bhd’s operation capacity and support its future growth.

The land, it said, was adjacent and connected to KUB Gaz’s existing bottling facility.

“The operations on the property would be able to utilise Westports’ liquid bulk jetty facilities and existing storage and auxiliary equipment at KUB Gaz’s existing site, which otherwise would not be possible to be carried out at any other available location,” KUB said.

The company pointed out that the land is valued at RM18.5mil, and that it is paying a 35% premium to market value.

KUB said the expansion plans for the property include the construc- tion of additional storage facilities that would enable KUB Gaz to increase its importation capacity, bottling facility, cylinder storage and truck bays.

“The group is also assessing the possibility of utilising the property to host a refrigerated liquefied petroleum gas terminal,” it said.

Notably, last week, KUB completed the disposal of its fast-food restaurant A&W Malaysia for RM34mil, after two years of discussions.

For the proposed acquisition, KUB said it would be satisfied by cash from internally generated funds.

For the second quarter ended June 30, KUB posted a 56% decline in net profit to RM3.2mil from RM7.3mil a year ago, due to lower contribution from its energy, agricultural as well as information, communications and technology businesses.

Revenue for the quarter fell slightly to RM111.81mil from RM113.45mil previously.

Shares in KUB closed 1.63% higher to 31.5 sen yesterday.