PETALING JAYA (July 2): EC Excel Holdings Bhd, formerly known as K. Seng Seng Corp Bhd, plans to strengthen its manufacturing operations with the proposed acquisition of a freehold industrial land in Bandar Sri Sendayan, Seremban, for RM10.17 million.

In a Bursa Malaysia filing, the company said its 51%-owned subsidiary, Metalmach Micro Technology Sdn Bhd (MMTSB), has signed a sale and purchase agreement (SPA) with MCGF Sdn Bhd to acquire the industrial land for a cash consideration of RM10,165,858.56.

The freehold property, identified as H.S.(D) 215210, PT 11646 in Bandar Sri Sendayan, Negeri Sembilan, spans approximately 10,732 sq m and is designated exclusively for industrial use. Any transfer, lease or charge of the land requires prior written consent from the Negeri Sembilan state authority.

MMTSB entered into the SPA on July 1, 2026, with the land being acquired on an "as is where is" basis, free from all charges and encumbrances, together with vacant possession, subject to the terms of the agreement.

The acquisition will be financed through bank borrowings or other financing facilities.

MMTSB, which specialises in manufacturing high-precision tools and dies, moulds, mould parts, jigs, fixtures and mechanical components, intends to develop a warehouse on the site to support the group's growing operational requirements.

According to EC Excel, the acquisition aligns with its long-term expansion strategy by increasing storage capacity, improving operational efficiency and providing additional space to accommodate future business growth.

The purchase price was negotiated on a willing-buyer willing-seller basis after considering the strategic location of the land, prevailing market values in the surrounding area and the expected benefits of the acquisition. The company noted that no independent valuation was conducted for the transaction.

EC Excel also said the acquisition is not expected to have a material impact on its share capital, substantial shareholders' shareholdings, net assets, gearing, earnings or earnings per share for the financial year ending Dec 31, 2026.

The transaction does not require shareholders' approval but remains subject to the Negeri Sembilan state authority granting consent for the transfer of the land. Based on Bursa Malaysia's Main Market Listing Requirements, the highest applicable percentage ratio for the acquisition is 6.26%.

The board added that none of its directors, major shareholders or persons connected to them has any direct or indirect interest in the transaction and believes the acquisition is in the best interests of the company.

Barring any unforeseen circumstances, the acquisition is expected to be completed in the fourth quarter of 2026.

Key Takeaways

This transaction demonstrates how manufacturers invest in strategic industrial assets to support long-term operational growth rather than immediate earnings. By acquiring additional land for warehouse development, EC Excel is preparing to improve inventory management, production support and future expansion capacity.

The deal also illustrates that acquisitions involving industrial land may require state authority approval, particularly when land titles carry transfer restrictions. Although the acquisition is relatively small compared with EC Excel's overall size and is not expected to materially affect its financial performance in the near term, it reflects the company's commitment to expanding its manufacturing infrastructure and enhancing operational efficiency over the longer term.