Qian Hu Development, a wholly-owned subsidiary of Qian Hu Corporation BCV , has proposed the acquisition of a property in Selangor, Malaysia for a purchase consideration of RM14.5 million ($4.1 million).
On March 12, Qian Hu announced that the subsidiary had entered into a sale and purchase agreement with Magnum Concept for property, which consists of a 3,695 sqm plot of freehold land and a two-storey warehouse in construction on the land.
Qian Hu intends to relocate and consolidate its wholesale and distribution business activities in Malaysia at the property to increase operational synergies and improve efficiencies, compared to the current leasehold premises from which it operates.
The proposed acquisition is also part of the group’s plan to expand its pet accessories business in Malaysia, and will enable the group to have more control over the future of its commercial space to generate potential long-term cost savings.
The purchase consideration will be financed by internally generated funds and bank borrowings.
Shares in Qian Hu closed unchanged at 18.5 cents on March 12.
