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- Both plots have 60-year leases on them. One of the plots, which has a three-storey office building with a single-storey open-sided factory erected on it, will see its lease expire on May 19, 2068. The other plot's lease is set to expire on May 3, 2069.
KUALA LUMPUR (Nov 1): Hygiene care solutions maker RGT Bhd (KL:RGTBHD) said on Friday it is buying two leasehold industrial plots for RM16.8 million, located in Simpang Ampat, Penang, to set up dedicated assembly and production lines for new customers and to enhance its production efficiency.
RGT is buying the properties from Permai Gas Sdn Bhd via its wholly owned Rapid Growth Technology Sdn Bhd. A sale and purchase agreement for the purchase was inked on Friday.
Both plots have 60-year leases on them. One of the plots, which has a three-storey office building with a single-storey open-sided factory erected on it, will see its lease expire on May 19, 2068. The other plot's lease is set to expire on May 3, 2069.
These new properties, situated within the same industrial estate — Taman Perindustrian Bukit Minyak — are also expected to result in cost savings in logistics and management, said RGT.
The company plans to part-finance the purchase via bank borrowings and internal funds. It expects its gearing to increase from 0.39 times to 0.50 times following the purchase.
RGT shares closed unchanged at 57 sen apiece, giving it a market capitalisation of RM200.92 million, Year-to-date, the stock has fallen 18.3%.
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