“Swift Haulage recognised the strategic significance of this location based on the years of operational experience, as evidenced by the high utilisation rate of its existing warehouse. Acquiring this targeted property will enable our northern region office to expand its warehouse capacity and enhance its revenue potential,” it added.

In a filing with Bursa Malaysia on Tuesday, Swift Haulage said its wholly-owned subsidiary Swift Integrated Logistics Sdn Bhd had entered into a conditional sale and purchase agreement with Transocean for the proposed acquisition. A single-storey bonded warehouse with a gross floor area (GFA) of 103,150 sq ft and a five-storey office block with a GFA of 31,300 sq ft are currently sited on the land.

The disposal of the property by Transocean to Swift Haulage is not subject to any prior approval from Penang Development Corp. The property is presently charged to CIMB Bank Bhd.

The sale and purchase of the property is conditional on Swift Haulage, at its own costs and expenses, obtaining the approval of the Economic Planning Unit (EPU) of the Prime Minister’s Department for the acquisition of the property from Transocean and Transocean obtaining its shareholders’ approval in respect of the sale of the property to Swift Haulage.

Swift Haulage said it plans to fund the proposed acquisition through a bank facility from a financial institution.

“The proposed acquisition will not have any effect on the issued share capital and substantial shareholders’ shareholdings as the (exercise) does not involve the issuance of new shares in Swift Haulage.”

The proposed acquisition is also not expected to have any material effect on Swift Haulage’s earnings and earnings per share for the financial year ending Dec 31, 2023.

In a separate filing, Transocean said the acquisition cost of the land and the cost of setting up the bonded warehouse and office was RM19.56 million.

“The proposed disposal will allow Transocean to realise and unlock its investment in the property at the prevailing market value. The proceeds from the disposal consideration will provide the group with the funds to meet its working capital requirement.

“The proposed disposal will improve the group’s financial position as the gain on disposal of RM410,000 and reversal of deferred tax liabilities of RM1.5 million are expected to increase the net assets of Transocean by RM1.91 million,” it added.

Barring any unforeseen circumstances, the proposed transaction is expected to be completed by the second quarter of 2024.

Swift Haulage shares ended the day unchanged at 55.5 sen on Tuesday, valuing it at RM489.5 million. Transocean shares, meanwhile, closed down four sen or 2.27% to RM1.72, giving it a market capitalisation of RM111.97 million.