3 JUNE, KUALA LUMPUR – Johore Tin Bhd (JTB) plans to diversify into property development following the acquisition of a piece of freehold land worth RM169.8 million.
The proposed land acquisition will be undertaken to restructure and expand its manufacturing operations and to undertake property development activities.
“The purchase consideration is proposed to be funded via internally generated funds and bank borrowings. As of March 31, 2021, JTB Group has cash and bank balances of RM102.4 million,” JTB said in a statement.
The acquisition of 120.4 hectares, located at Kuala Langat, Selangor was made through JTB’s wholly-owned subsidiaries Able Dairies Sdn Bhd, Unican Industries Sdn Bhd and Able Development Sdn Bhd with PNB Development Sdn Bhd.
JTB is principally involved in the manufacturing and trading of various tins, cans and other containers and the production of milk and other dairy products.
“The proposed land acquisition allows the group to expand its income base via venturing into property development activities,” it added.
JTB would also utilise a portion of the land to expand its manufacturing operations as well and the portion of the land assigned for the existing business is sizeable and allows the group to restructure and expand its operations in the central region of Peninsular Malaysia as JTB has four factories and warehouses in the area of Teluk Panglima Garang, Selangor.
At this juncture, the group has yet to decide on the plans for its property development business, which may include entering into a joint-venture arrangement for the development of the land.