Venture Corp goes on a Malaysian property buying binge

Snaps up several freehold industrial land.

In a release, Venture Corporation Limited announced that the Company’s wholly-owned subsidiaries in Malaysia, Munivac Sdn. Bhd. and GES Manufacturing Services (M) Sdn Bhd, have entered into agreements to acquire several properties.

Munivac Sdn. Bhd. (Munivac) has entered into Sale and Purchase Agreements with Canrich Property Sdn. Bhd., for the acquisition of four pieces of adjoining freehold industrial land together with detached factories erected thereon and known as No. 49, 51, 53 & 55, Jalan Riang 21, Kawasan Perindustrian Taman Gembira, 81200 Johor Bahru, Johor, Malaysia with an aggregate area of approximately 138,589 square feet (1.2875 hectares), held under HS(D) 6220-6223 LOT 4020-4023 Mukim Tebrau, District of Johor Bahru, for the aggregate sum of RM22.95 million. 

Meanwhile, GES Manufacturing Services (M) Sdn Bhd (GESM), has entered into a Sale and Purchase Agreement with Mr. Chaw Kam Shiang, for the acquisition of a parcel of leasehold land together with a factory building erected thereon with an area of approximately 0.4978 hectares, held under HS(D) 45801 PTD 8824 in the Mukim of Senai, District of Kulaijaya, State of Johor Darul Takzim, Malaysia with a leasehold expiring on 10 February 2052, for RM4.20 million.

The Proposed Acquisitions are for Munivac and GESM’s operations and business activities. Both Munivac and GESM are presently leasing the properties from the respective vendors.The consideration for the Proposed Acquisitions was arrived at after arm’s length negotiations on a willing buyer willing seller basis, taking into account inter alia, prevailing market rates.

The Proposed Acquisitions are subject to the usual conditions of sale inter alia that the properties be free from encumbrances. In addition, the GESM Proposed Acquisition is subject to and conditional upon obtaining the relevant approvals from the necessary governmental authorities and will be completed when all the relevant approvals have been obtained.

Completion of the Proposed Acquisitions will take place upon the satisfaction of all the conditions precedent and in any event, no later than 31 August 2013 or such other mutually agreed date between the respective parties. If any condition precedent is not satisfied by the Completion Date, the Sale and Purchase Agreements will automatically terminate and neither party will have any claim against the other except for any antecedent breach of the Sale and Purchase Agreements.

The Proposed Acquisitions will be funded by internal resources and are not expected to have any material impact on the Company’s earnings per share or net tangible assets per share for the current financial year ending 31 December 2013.