KUALA LUMPUR (Sept 15): Shah Alam-based automated test equipment manufacturer QES Group Bhd is buying a piece of land measuring 87,120 square feet from the Penang state government's development arm The Penang Development Corp for RM4.79 million cash.
The group's subsidiary QES Mechatronic Sdn Bhd entered into a sale and purchase agreement today to acquire the land located in Batu Kawan Industrial Park, Seberang Perai Selatan, Penang.
In a bourse filing today, the group said the proposed acquisition will expand its physical operating space to support future growth and expansion plans for QES Group's manufacturing and distribution division.
The purchase price was arrived at on a willing buyer-willing seller basis, with the acquisition to be financed by internally generated funds or bank borrowings, according to the group.
Assuming that 80% of the purchase consideration of RM4.79 million is financed through bank borrowings, the exercise will increase QES Group's gearing ratio from 0.26 to 0.29.
"The proposed acquisition shall be used only for manufacturing inspection, measuring, automated handling equipment, electro-mechanical prototyping to high volume production for the semiconductor, life science, defence, aerospace and emerging technology industries which will also include research and development activities related to Industrial Revolution 4.0 and smart manufacturing solutions," said the group.
Barring any unforeseen circumstances, QES Group said the exercise is expected to be completed within six months from the date of agreement.
Shares of QES Group were unchanged at 72.5 sen as at noon break, giving the group a market capitalisation of RM600.72 million. The stock has risen 159% year-to-date from 28 sen apiece.