Source: The Edge Malaysia BMS plans to buy Cheras land for RM23.8 mil, in line with expansion
KUALA LUMPUR (Aug 6): BMS Holdings Bhd (KL:BMS), a Johor-based tile retailer, plans to buy 4,555 sq m (1.12 acres) of land in Cheras with a workshop and offices, for RM23.8 million cash as part of its expansion plans.
A letter of offer was inked between BMS’ wholly owned unit, Jubin BMS (1990) Sdn Bhd and vendor Chyen Huat Hardware Sdn Bhd for the proposed land deal, according to a bourse filing on Thursday.
The deal is still subject to a sales and purchase agreement, expected to be executed within 30 working days. It is not subject to regulatory or shareholder approval.
“The proposed acquisition is in line with the group’s business expansion plans and is intended to support its long-term operational requirements,” BMS said.
BMS operates across retail, wholesale and project sales of building materials, primarily tiles and stone surfaces, including porcelain and ceramic tiles, engineered stones, natural stones and mosaics. The company also supplies complementary bathware and kitchenware products.
Upon completion of the proposed acquisition, the group can leverage the strategic location of the property in Cheras to strengthen its business presence and the property is intended to be utilised as an operational facility comprising a retail showroom, office and storage facility,” it added.
BMS plans to fund the land purchase via a combination of internally generated funds and bank borrowings.
Further details of the proposed acquisition, including salient terms of the sales and purchase agreement, rationale for the transactions and associated risk factors, will be announced upon the sales and purchase agreement’s execution, BMS noted.
The company listed on the bourse’s ACE Market in December last year with an initial public offering (IPO) price of 22 sen.
On Thursday, the counter closed unchanged at 13.5 sen, down 38.6% from its listing price, valuing the company at RM207.9 million.
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