KUALA LUMPUR (Oct 21): Shipping firm Shin Yang Group Bhd (KL:SYGROUP) is acquiring a parcel of land in Kota Kinabalu, Sabah, for RM26.6 million, cash, from its controlling shareholder. The acquisition is for the group's planned warehouse expansion and logistics development.
The Sarawak-based group entered into an agreement on Tuesday (Oct 21) with Shin Yang Sdn Bhd (SYSB) to purchase the 5.37ha (approximately 13.27-acre) parcel, which is situated off Sepanggar Bay and includes an existing workshop building, according to a filing with Bursa Malaysia.
As SYSB is owned by Shin Yang Holding Sdn Bhd — which controls a 58.61% stake in Shin Yang Group — the transaction is classified as a related-party transaction. Shin Yang Holding is owned by the Ling family, whose patriarch, Tan Sri Ling Chiong Ho, serves as the group executive chairman of Shin Yang Group.
Shin Yang Group said the acquisition is necessary to support its "warehouse expansion and logistics development as an integrated logistic service provider." The purchase will be fully financed using internal funds.
The purchase consideration of RM26.6 million is supported by the land’s market value, which was ascribed by an independent valuer in July this year.
The land acquisition is expected to be completed by the fourth quarter of 2025.
Shares in Shin Yang Group rose three sen, or 3.66%, to close at 85 sen on Tuesday, giving the group a market capitalisation of RM1.02 billion.
* Credit news article from:https://theedgemalaysia.com/node/774827