KUALA LUMPUR (Aug 17): OCB Bhd has proposed the acquisition of a piece of land in Kapar for RM56.29 million, which is intended to be used as a warehousing and distribution hub for the group.

In a filing with the exchange, OCB, which is involved in the fast moving consumer products business, said its 80%-owned subsidiary Enigma Sinar Sdn Bhd is acquiring the 36.9-acre agriculture land from Golden Valley Industries Sdn Bhd.

“The proposed purchase provides OCB with the opportunity to acquire a sizeable landbank strategically located near Port Klang, which is the busiest container port in Malaysia and can be easily accessed from various expressway connections.

“The proposed purchase is in line with OCB group of companies’ strategy to expand into warehousing and distribution to cater to the group’s needs, as the lot is intended to be used as a warehousing and distribution hub for the group,” it said.

The group said it intends to fund 80% of the purchase via bank borrowings, while the balance will be from internally-generated funds.

It expects to complete the proposed purchase within 12 months.

OCB’s share price closed unchanged at 37.5 sen, giving the group a market capitalisation of RM38.57 million.