WS-SK Target Group Plans RM24.00 Million Land Buy in Selangor to Secure Core Production Site

Bulletin Express07-23

WS-SK Target Group Limited has signed a Sale and Purchase Agreement (SPA) on 10 July 2026 for the acquisition of a 8,093.7 sq m freehold industrial plot at No. 1894, Jalan KPB 5, Kawasan Perindustrian Balakong, Selangor, Malaysia. The land is currently leased by the Group’s main operating subsidiary, Target Precast Industries Sdn. Bhd., which produces precast concrete junction boxes.

Transaction Structure • Consideration: RM24.00 million. • Payment schedule: RM0.48 million earnest deposit already paid; RM1.92 million balance deposit (RM0.72 million retained for tax, RM1.20 million to vendor’s solicitors) already paid; RM21.60 million due within 90 days after the SPA becomes unconditional. • Funding: c.40% internal resources (≈RM9.60 million) and c.60% bank borrowings (≈RM14.40 million).

Key Conditions Precedent 1. Shareholders’ approval at an Extraordinary General Meeting (EGM) set for 12 August 2026 in Hong Kong. 2. Approval from the relevant Malaysian state authority. 3. Securing bank financing for at least 60% of the consideration.

Strategic Rationale The Group currently rents the site for RM0.58 million per year under a lease expiring 31 January 2027. Management cites potential relocation risks, production disruption and cost savings on future rent as drivers for purchasing the property. Ownership will also support long-term expansion plans and mitigate exposure to rental increases.

Valuation and Fairness Independent valuer Laurelcap Sdn. Bhd. appraised the land at RM24.00 million on 9 June 2026 using the comparison approach. The Board considers the valuation methodology, selected comparables and pricing adjustments reasonable, concluding that the acquisition terms are fair and in shareholders’ interests.

Financial Impact Upon completion, non-current assets will rise by RM24.00 million, cash will fall by roughly RM9.60 million and bank borrowings will increase by about RM14.40 million. The Board expects no material effect on net assets or earnings.

Vendor and Counterparty Vendor: Kien Heng Hong Ginseng Sdn. Bhd.; Purchaser: Target Precast Industries Sdn. Bhd. (indirect wholly-owned). The vendor and its ultimate owners are independent third parties.

Shareholder Action Shareholders registered by 6 August 2026 may vote at the EGM on 12 August 2026. Proxy forms must reach Tricor Investor Services Limited at least 48 hours before the meeting.

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