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SUPERMX

1.580

(%)

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONS SUPERMAX CORPORATION BERHAD ("SUPERMAX" OR "THE COMPANY") PROPOSED ACQUISITION BY MAXTER GLOVE MANUFACTURING SDN BHD ("MAXTER"), A WHOLLY-OWNED SUBSIDIARY OF SUPERMAX, OF A PIECE OF FREEHOLD LAND WITH INDUSTRIAL PREMISES LOCATED AT LOT 43816, MUKIM KAPAR, DISTRICT KLANG, SELANGOR DARUL EHSAN, HELD UNDER TITLE NO. GRN 68913 BEARING POSTAL ADDRESS AT LOTS 6072 AND 6073, JALAN HAJI ABDUL MANAN 1, BATU 5 1/2, OFF JALAN MERU, KLANG, SELANGOR DARUL EHSAN ("PROPERTY")

SUPERMAX CORPORATION BERHAD

Type Announcement
Subject TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)
NON RELATED PARTY TRANSACTIONS
Description
SUPERMAX CORPORATION BERHAD ("SUPERMAX" OR "THE COMPANY")
PROPOSED ACQUISITION BY MAXTER GLOVE MANUFACTURING SDN BHD ("MAXTER"), A WHOLLY-OWNED SUBSIDIARY OF SUPERMAX, OF A PIECE OF FREEHOLD LAND WITH INDUSTRIAL PREMISES LOCATED AT LOT 43816, MUKIM KAPAR, DISTRICT KLANG, SELANGOR DARUL EHSAN, HELD UNDER TITLE NO. GRN 68913 BEARING POSTAL ADDRESS AT LOTS 6072 AND 6073, JALAN HAJI ABDUL MANAN 1, BATU 5 1/2, OFF JALAN MERU, KLANG, SELANGOR DARUL EHSAN ("PROPERTY")

Reference is made to the announcement dated 18 July 2019. Unless otherwise stated, defined terms used in this announcement shall have the same meaning as those used in the announcement. 

 

The Board of Directors of Supermax Corporation Berhad ("Supermax") wishes to provide the following additional information for the Proposed Acquisition:- 

 

The Purchase Consideration of RM65.0 million for the acquisition of a piece of freehold land with industrial premises located at Lot 43816 Mukim Kapar (“Property”) was arrived at after considering:

 

  1. Valuation Report prepared by Jones Lang Wootton (“JLW”)
  2. Guaranteed rental income of minimum RM1.5 million and maximum of RM3.0 million
  3. Strategic location of property neighbouring our existing cluster of manufacturing plants in Meru, Klang.

 

JLW has in their valuation report dated 30 May 2019 opined that the Market Value of the interest in perpetuity in the Property is RM63.0 million.  In arriving at their opinion, they had adopted the Cost Approach, which is defined as the aggregate amount of the value of the land component and the gross replacement cost of the buildings and other site improvements, allowing for depreciation.  The land components were derived by using the Comparison Approach, where comparison is made with sales of other similar properties. Where dissimilarities exist, adjustments are made. 

 

While the valuation report supports a market value of RM63.0 million, a premium of RM2.0 million was accorded to the final purchase consideration of RM65.0 million after also taking into account 2 other important factors. 

 

One is the Tenancy Agreement for a part of the land together with the industrial premises signed in escrow by Leader Cable and Maxter whereby the former would pay the latter a minimum rental sum of RM1.5 million (being rental for a minimum of 6 months at a monthly rate of RM250,000), up to a maximum rental sum of RM3.0 million (being rental for a maximum of up to 12 months at a monthly rate of RM250,000).  The other is the strategic location of the property as it neighbours our existing cluster of plants in Meru, Klang, covering Lots 6058, 6059, 6061, 6068, 6069 & 6070, which will ease managing the operations of the plants within a location.

 

This announcement is dated 23 July 2019.






Announcement Info

Company Name SUPERMAX CORPORATION BERHAD
Stock Name SUPERMX
Date Announced 23 Jul 2019
Category General Announcement for PLC
Reference Number GA1-23072019-00069