Frontken's subsidiary AGTC acquires Taiwan industrial facility for RM118mil
KUALA LUMPUR: Frontken Corporation Bhd announced that its subsidiary, Ares Green Technology Corporation (AGTC), has won a bid to acquire an industrial land in Tainan, Taiwan for a total cash consideration of NT$920 million (approximately RM118.16 million).
KUALA LUMPUR: AGTC, a subsidiary of Frontken Corporation Bhd, has secured an industrial property in Tainan, Taiwan for RM118.16 million. The land, complete with seven factory blocks, was procured via a public tender that ended on September 14. AGTC was chosen on September 15. The 16,172 square metre site is situated in Tainan Xinying Industrial Zone and features seven existing factory buildings, totaling 12,611.07 square metres of floor area.
The property is designated as Type B industrial land, with a 70% building coverage ratio and a 210% floor area ratio. It also includes a solar PV system capable of generating 1,245.92 kWp. The acquisition will support AGTC's growth and future capacity needs by providing nearby space for new production lines to meet anticipated market demand.
The entire purchase price will be covered by AGTC's internal funds, with an initial NT$82 million deposit followed by three additional installments. No debts or guarantees will be taken on by either company. The deal will not impact Frontken's share capital, shareholder holdings, or financial stability. Long-term, the acquisition is anticipated to positively influence earnings and earnings per share, assuming successful implementation of the new production lines and favorable market conditions.
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