TEHO International, through its wholly-owned subsidiary, TEHO Rope Korea, has entered into a property sales contract with an unrelated third party for the acquisition of a warehousing facility in Busan, Korea.
According to an Oct 2 release, the purchase consideration for the proposed acquisition stands at KRW2.9 billion ($2.9 million). The group has since paid a down payment of KRW295 million for the proposed acquisition.
The balance purchase consideration of KRW2,655,000,000 is expected to be paid by Oct 30.
The property, which is currently used as a factory, comprises a freehold land of 1,756.70 sqm and a building with a built-up area of 1,316.12 sqm.
The group says the proposed acquisition is part of its strategy for business expansion of TEHO’S marine and offshore segment, with the group intending to use the property as a warehousing facility.
They add: “The property will expand the group’s inventory storage capacity in the Republic of Korea and provide enhanced supply chain and logistics support to related companies worldwide.”
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Had the acquisition been completed on June 30, there would have been no changes to TEHO International 5OQ ’s FY2024 net tangible assets (NTA) of $23.6 million or NTA per share of 10.03 cents.
Additionally, had the acquisition been completed at the beginning of FY2024, the group’s earnings would have been at $836 million from $900 million originally. Its earnings per share would have dropped to 0.36 cents from 0.38 cents originally.
Shares in TEHO International closed flat at 3.5 cents on Oct 2.
