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- The group, through its wholly-owned subsidiary Power Root Support Services Sdn Bhd, is acquiring the land, located in the Mukim of Sedenak in Kulai district, from Ree Fong Agriculture Sdn Bhd.
KUALA LUMPUR (Dec 10): Power Root Bhd (KL:PWROOT) said it is purchasing 3.48 million square feet of agriculture land in Johor for RM19.99 million in cash.
“The proposed acquisition is expected to strengthen our vertical integration across the entire coffee value chain by enhancing our upstream capabilities, reduce reliance on external suppliers and mitigate the risk of potential raw material price fluctuations,” Power Root told Bursa Malaysia on Tuesday.
The group, through its wholly-owned subsidiary Power Root Support Services Sdn Bhd, is acquiring the land, located in the Mukim of Sedenak in Kulai district, from Ree Fong Agriculture Sdn Bhd.
Power Root said the acquisition will be funded through internally-generated funds or debt financing.
The purchase consideration, it said, was determined on a willing-buyer, willing-seller basis, after considering the prevailing market value of land in the area and the location of the land.
Shares of Power Root gained three sen or 2.04% to close at RM1.50 on Tuesday, giving the group a market capitalisation of RM632.3 million.
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