KUALA LUMPUR (Oct 31): Tri-Mode System (M) Bhd has proposed to acquire three parcels of leasehold land in Pulau Indah, Klang for a total cash consideration of RM42 million.

“The proposed acquisitions form part of the group’s strategy to accumulate strategic land to accommodate Tri-Mode’s future operation requirements in the Port Klang region," said the logistics solutions provider in a filing with Bursa Malaysia on Tuesday.

“The parcels of land with their strategic locations are potentially a valuable addition to the land bank of the group, as it provides the group with an opportunity to expand its warehouse and logistics capacity to meet the demands of its current and future customers," the group added.

Tri-Mode said it is buying the land from Central Spectrum (M) Sdn Bhd, a company indirectly owned by Menteri Besar Selangor Incorporated.

The group intends to fund the acquisitions with internally generated funds and/or bank borrowings.

It added that the acquisitions are expected to be completed in the first quarter of next year.

Tri-Mode shares closed unchanged at 34 sen on Tuesday, giving the group a market capitalisation of RM56.44 million. Year to date, the stock has fallen by 12.82%.