KUALA LUMPUR: Pekat Group Bhd, through its indirect 60%-owned subsidiary EPE Switchgear (M) Sdn Bhd, is acquiring six contiguous freehold industrial land parcels in Nilai, Negeri Sembilan, for RM30.58 million to accommodate its planned business expansion.
The group said EPE Switchgear had entered into six separate sale and purchase agreements with Sime Darby Property (Nilai) Sdn Bhd on Oct 30, 2026, for the acquisition of the 38,108 sq m of land.
The net purchase consideration of RM30.58 million was arrived at after deducting RM2.25 million in rebates from the original purchase price of RM32.82 million. The rebates comprise early-bird, bulk-purchase and early-signing incentives.
The lands, which form part of Sime Darby Property's Bandar Hamilton Nilai – Plot 5 industrial development, will be used to support EPE Switchgear's existing switchgear manufacturing operations, as well as the group's battery energy storage system, transformer and substation businesses.
Pekat said its existing premises in Nilai lacked sufficient capacity for its planned expansion, adding that the acquisition would provide long-term security of tenure for its operations.
The purchase will be funded through internally generated funds and/or bank borrowings. The vendor is responsible for completing infrastructure works and delivering vacant possession within 48 months from the agreement dates.
The acquisition is not expected to have a material impact on the group's net assets or earnings for the financial year ending Dec 31, 2026, although gearing could increase if bank borrowings are utilised.
The transaction does not require shareholders' approval, while the board considers it to be in the group's best interests.