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KUALA LUMPUR: Farm Fresh Bhd (FFB) has proposed to acquire an 8.05-acre piece of freehold industrial land in Seremban for RM18.24mil, to be used as a new manufacturing hub.
The dairy company, in a filing with Bursa Malaysia, said its wholly-owned subsidiary, The Holstein Milk Company (M) Sdn Bhd (THMCM), had entered into a sale and purchase agreement to acquire a 32,590 sq m or 8.05316 acres freehold industrial land in Bandar Baru Enstek from THP Enstek Development Sdn Bhd.
FFB said the proposed acquisition will be fully funded from its initial public offering (IPO) proceeds.
“FFB plans to use the land for the establishment of a new manufacturing hub in the greater central region of Peninsular Malaysia to increase FFB’s existing production capacity for dairy and plant-based products, and new adjacent product offerings.
“The land is strategically located in the central region of Peninsular, which will enable FFB to improve its cost-efficiency by reducing transportation costs as the new manufacturing hub will be closer to its customers in Klang Valley,” it said.