JAG proposes RM36.89m Shah Alam land buy from Kobe Steel for waste management expansion
JAG Bhd has proposed acquiring freehold industrial land in Shah Alam from Japan's Kobe Steel Ltd for RM36.89 million to support the expansion of its total waste management business. The purchase price is about 12.2 per cent below the RM42 million market value assessed by Laurelcap Sdn Bhd.
PETALING JAYA (Oct 15): JAG Bhd has proposed acquiring freehold industrial land in Shah Alam from Japan's Kobe Steel Ltd for RM36.89 million to support the expansion of its total waste management business, including planned facilities to process end-of-life data centre equipment, solar panels and electric vehicle (EV) batteries.
In a Bursa Malaysia filing on Wednesday (Oct 14), JAG said its wholly owned subsidiary, JAG Renewable Energy Sdn Bhd, had signed a sale and purchase agreement that day for the vacant parcel in Hicom Industrial Estate, Section 26. The land measures approximately 15,016 sq m, or 161,631 sq ft, and is held under H.S.(D) 329003, PT 58002, Pekan Hicom, Petaling district, Selangor. Its postal address is Lot No. 40414, Persiaran Sabak Bernam.
The purchase price is about 12.2 per cent below the RM42 million market value assessed by Laurelcap Sdn Bhd on Aug 28, 2026, according to the filing. JAG said the price was agreed on a willing-buyer, willing-seller and “as is where is” basis, taking into account the land's location, accessibility, development potential, comparable property prices and estimated expenditure required to develop and use it for the group's operations.
In a separate press release, JAG said the proposed expansion would require approximately RM60 million in total capital, including land and equipment, to establish new production lines and expand storage capacity. The group plans to progressively develop processing lines and supporting facilities for dismantling, segregation, recycling and recovery of materials from end-of-life equipment, alongside additional capacity for its existing industrial waste operations.
Implementation will depend on available waste volumes, technical and commercial feasibility, capital expenditure requirements and the necessary regulatory approvals, JAG said. JAG executive director Datuk Ng Meow Giak said the investment would help prepare the group for waste streams expected to emerge as Malaysia's digital infrastructure, renewable energy assets and EV equipment reach the end of their useful lives. “Building the infrastructure, recovery capabilities and regulatory readiness required to support future waste streams takes time,” he said.
According to the press release, the land purchase will be financed through internally generated funds for the 10 per cent deposit and bank borrowings for the remaining consideration. JAG expects the acquisition to be completed by Jan 16, 2027, barring unforeseen circumstances.
The company said the land acquisition is not subject to shareholder or regulatory approval. Completion nevertheless remains subject to the SPA's terms and conditions, while the establishment and operation of new facilities will require the relevant regulatory approvals. JAG said the acquisition is not expected to materially affect its consolidated earnings or earnings per share for the financial year ending Dec 31, 2026. It also does not expect an immediate material earnings impact until the relevant facilities are established and sufficient business volumes are secured.
