QES to acquire Shah Alam factory for RM21m

Move will allow the company to have its own premises, save on rental, and enable it to expand office and manufacturing space

PETALING JAYA: QES Group Bhd has entered into a sale and purchase agreement with Astronautic Technology (M) Sdn Bhd for the acquisition of a five-storey factory in Hicom Glenmarie Industrial Park, Shah Alam, via its wholly owned subsidiary QES (Asia-Pacific) Sdn Bhd for a cash consideration of RM21 million.

According to its Bursa filing, as the group operates from a rented premise close to the property, the acquisition would allow it to own the premises, save on rental cost, and allow for further expansion of office and factory space.

It stated that the purchase consideration of RM21 million was reached at a willing buyerwilling seller basis, after taking into consideration the prime location of the property and the prevailing market value of property in the surrounding area.

QES revealed that the factory is sitting on land measuring 5,833 sq m and the building comprises a single-storey detached factory with an annexed five-storey office building with a basement level car park.

Its managing director and president Chew Ne Weng commented that the proposed acquisition is in line with the group’s expansion plans to increase its existing manufacturing capacity by commissioning new production lines.

“The expansion is estimated to double QES’s manufacturing capacity as well as to support future growth and expansion plans for the manufacturing and distribution division of the company,” he said in a press release.

The proposed acquisition will be funded via internally generated funds and/or bank borrowings.

Barring any unforeseen circumstances, the acquisition is expected to be completed within three months.