LB Aluminium Bhd announced that it is acquiring a 6.74-acre leasehold industrial land along with existing buildings in Banting, Selangor, for RM 22 million (USD 5.21 million). In a filing with Bursa Malaysia, the aluminium extrusion manufacturer said the property is being purchased from Lucksoon Coatings Sdn Bhd.
As part of the agreement, LB Aluminium will enter into a contra arrangement with Lucksoon Coatings and its related company, Lucksoon Metal Works Sdn Bhd, to offset RM 4.01 million of outstanding debt owed by Lucksoon Metal, using part of the purchase price.
Additionally, LB Aluminium said it will enter into a three-year tenancy agreement to lease the property back to Lucksoon Metal, which currently occupies the site for its metal works operations and metal product trading business, once the acquisition is completed.
LB Aluminium noted that the land offers strong capital appreciation potential due to its strategic location near Port Klang and Kuala Lumpur International Airport, with easy connectivity via major highways. The acquisition will be financed through a combination of internally generated funds and bank borrowings. On Thursday, shares of LB Aluminium closed one sen or 2.1 per cent higher at 48.5 sen, giving the company a market value of RM 210.9 million.
LB Aluminium Berhad is one of Asia’s largest aluminium extrusion manufacturers and a leading supplier in Malaysia and Southeast Asia. Listed on the stock exchange since 1994, the company focuses on the manufacturing, marketing, and trading of aluminium extrusions and related products. LB Aluminium is recognised for its dedication to innovation, stringent quality control, prompt service, and commitment to environmental sustainability.
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