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QL Resources Bhd is buying five plots of land from four parties related to its major shareholders to expand its farming and food processing businesses for RM48.7 million.

The lands, measuring 41.401 acres in total, are located in Sabah, Selangor and Perak. The deals are transacted via its subsidiaries.

In the first land deal, its wholly-owned QL Agroventures Sdn Bhd (QLAV) is buying a 17.15-acre plot in Sabah from MB Agriculture (Sabah) Sdn Bhd for RM2.09 million. The land, adjacent to the group’s current boiler farm, is to be used for QLAV’s farming expansion.

“The new broiler farm is expected to increase the total farms’ production capacity by 50%,” QL said.

In the second deal, it’s subsidiary QL Kitchen Sdn Bhd (QLK) is buying a 4.046-acre freehold vacant industrial plot in Shah Alam, Selangor, from Sizeable Properties Sdn Bhd for RM19 million. “The land acquired will be used for QLK’s food processing operation,” QL said.

In the third land deal, its subsidiary KS Galah Sdn Bhd is buying a portion of a leasehold vacant industrial land measuring 9.605 acres in Klang, Selangor, from Inspirasi Delima Sdn Bhd for RM23 million, to build a feed mill plant. “This is in line with the group’s strategic plan in establishing its broiler integration project,” QL said.

In the final transaction, its unit QL Foods Sdn Bhd is buying two plots of freehold agriculture land measuring a collective 10.6 acres from Credential Development Sdn Bhd for RM4.6 million, to expand its food manufacturing business.

“The said land is adjacent to the existing water treatment plant and the acquisition will facilitate the urgent need to expand its [QLF’s] water treatment facilities to cater for the increasing production capacity of the new production plant,” QL said.

The four vendors are companies linked to CBG (L) Pte Ltd and Farsathy Holdings Sdn Bhd, both major shareholders of QL.

QL said the acquisitions, to be funded by internal funds and/or borrowings, are expected to be completed within six months.

News Source: The Edge Malaysia, 20 December 2018

 

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