KUALA LUMPUR (June 12): Egg producer TPC Plus Bhd is buying four pieces of freehold agricultural land measuring 40 acres in Rembau, Negeri Sembilan for RM5.2 million, or RM130,000 per acre.

TPC told Bursa Malaysia on Monday (June 12) that its wholly owned subsidiary Teck Ping Chan Agriculture Sdn Bhd (TPCA) had entered into a sale and purchase agreement (SPA) with Mun Wah Estate Sdn Bhd on June 12 for the acquisition.

The net book value of the land is RM1.17 million.

TPC explained that the land is suitable to be used as a poultry farm and is relatively close to TPCA’s office in Alor Gajah, Melaka.

“The proposed acquisition is part of TPCA’s expansion plan to build more farm houses and increase egg production. This is expected to provide additional income and contribute positively to TPC’s future earnings,” the group added.

In terms of funding sources, TPC said the land will be satisfied by internally generated funds and/or borrowings. The funding breakdown has yet to be finalised.

Barring any unforeseen circumstances, the proposed acquisition is expected to complete within three months from the date of the SPA (before September 12, 2023).

TPC shares closed four sen or 17.02% higher to 27.5 sen, giving the group a market capitalisation of RM83 million.