KUALA LUMPUR (Sept 30): Dairy producer Farm Fresh Bhd has obtained the state authority's consent for the transfer of a freehold industrial land in Bandar Baru Enstek, Negeri Sembilan to the group to set up a manufacturing hub.

"The condition precedent for the sale and purchase agreement (SPA) has been fulfilled on Sept 29, 2022 and the SPA has now become unconditional," the group said in a filing with Bursa Malaysia.

The acquisition of the land from THP Enstek Development Sdn Bhd for RM18.24 million is expected to be completed within three months from the unconditional date, the group added.

Farm Fresh will use the land to establish a new manufacturing hub in the greater central region of Peninsular Malaysia to increase the group's existing production capacity for dairy and plant-based products, and for other new adjacent product offerings.

In its earlier filing on June 30, the dairy producer said the land would enable the group to improve its cost efficiency by reducing transportation costs, as the new hub would be closer to its customers in the Klang Valley.

Farm Fresh's share price was up 1.27% or two sen at RM1.60 in afternoon trading on Friday (Sept 30), giving the group a market capitalisation of RM2.97 billion.