KUALA LUMPUR (Jan 10): Leader Steel Holdings Bhd’s (LSH) wholly owned subsidiary Ferronet Asia Sdn Bhd has accepted a notice of award and offer for compensation (Form H) from the Klang Land Office invoking a compulsory acquisition under the Land Acquisition Act 1960 (Act 486) to acquire 28,903 square metres of land in Mukim Kapar, Klang for RM42.56 million cash.

In a filing with Bursa Malaysia on Wednesday, LSH said the compulsory disposal resulted from the receipt of Form H to take possession of the affected land under Section 18 of Act 486.

“In view of the said affected land being currently charged to a financial institution, the compensation consideration is subject to the amount payable to the financial institution to pare down the loan, which is in line with the charge documents.

“The remaining balance is expected to be used for future business expansion, working capital and repayment of debts,” it said.

LSH said the compensation consideration of RM42.56 million included compensation for severance damages and loss of income.

“The decision for the said consideration amount was made by the Klang Land Office during the land hearing held on Nov 28, 2023, based on facts presented by representatives from Ferronet and representatives from other relevant parties.

“The final amount awarded was subject to the acceptance of Form H, without any objection by both Ferronet and other relevant parties,” it said.