CPE Technology acquires RM14.5m Ulu Tiram factory for capacity expansion

CPE Technology Bhd has proposed to buy a factory and office property in Ulu Tiram, Johor, for RM14.5 million to expand its manufacturing capacity. The acquisition will be carried out by its wholly-owned subsidiary Champion Precision Technology Sdn Bhd, which signed a sale and purchase agreement with

PETALING JAYA (Oct 28): CPE Technology Bhd has proposed to acquire a factory and office property in Ulu Tiram, Johor, for RM14.5 million to expand its manufacturing capacity. In a Bursa Malaysia filing on Tuesday (Oct 27), the group said its wholly-owned subsidiary Champion Precision Technology Sdn Bhd had signed a sale and purchase agreement with Logitech Engineering Solutions Sdn Bhd for the acquisition.

The property comprises a factory with a three-storey office on approximately 0.4081 hectares (1.01 acres) of land at 16, Jalan Indah Gemilang 5, Taman Perindustrian Gemilang. The land is held under individual title H.S.(D) 54119, PTD 221511, in Mukim Plentong, Johor Bahru.

CPE said the purchase would provide additional space near its existing factories for Champion Precision Technology to set up additional or new manufacturing lines in the near future. The subsidiary manufactures precision-machined parts and components using computer numerical control (CNC) turning and milling technology, and provides related services.

The acquisition will be funded using proceeds from CPE’s initial public offering. The group said the price was determined on a willing-buyer, willing-seller basis, taking into account the acquisition’s rationale and prospects, as well as indicative average market values of comparable properties nearby.

Barring unforeseen circumstances, the proposed acquisition is expected to be completed by the third quarter of the group’s financial year ending June 30, 2027. CPE said the purchase was not expected to materially affect its earnings, net assets or gearing for that financial year, although it expected the acquisition to contribute positively to future earnings, barring unforeseen circumstances.

The group said the proposed acquisition did not require approval from its shareholders or other relevant authorities. According to the filing, none of its directors, major shareholders or persons connected with them has any direct or indirect interest in the transaction.