KUALA LUMPUR (Feb 6): Construction and mechanical and electrical service provider LFE Corp Bhd is buying 84 pieces of freehold land in Gurun, Kuala Muda, Kedah from private limited firm Aziho Trading Sdn Bhd for a total of RM1.03 million cash.

According to LFE, the land acquired is currently charged to CIMB Bank Bhd and CIMB Bank Islamic Bank Bhd as security for a banking facility. The outstanding loan in respect of the property have been fully settled, but the discharge of the charge of the property are pending registration. LFE's solicitors are in the midst of submitting the discharge documents to the Companies Commission of Malaysia and pending for the issuance of certificate of registration of satisfaction of charge. The contingent liabilities to be assumed by LFE is the balance purchase price.

LFE said it is seeking further business opportunities in the construction and property development industry.

In a filing with Bursa Malaysia on Monday, LFE said its wholly owned subsidiary LFE Development Sdn Bhd had signed a sale and purchase agreement with Aziho Trading for the proposed land acquisition.

It added that the proposed acquisition will be funded through internal funds and/or bank loans.

Aziho Trading is principally involved in plantation and construction activities. The company is equally owned by its three directors, namely Kang Ee Ling, Kang Hsuen F'eng and Kang Hsuen Chiang.

LFE said prospects for the property present an excellent opportunity for the group's future property development projects.

"Firstly, the land serves as a valuable addition to our land bank, ensuring a steady supply of suitable sites for development.

"Secondly, its strategic location adjacent to our existing development project in Gurun enhances the feasibility and synergy of both ventures. This proximity allows for efficient resource allocation, streamlined operations, and potential cost savings," it added.

The proposed acquisition does not require approval of LFE's shareholders and/or any regulatory authorities. Barring any unforeseen circumstances, it expects the proposed acquisition to be completed by year end.

LFE shares were untraded on Tuesday. The stock closed unchanged at 19 sen on Monday, bringing the group a market capitalisation of RM210.64 million.