Wellcall Holdings Bhd is buying three parcels of leasehold land in Ipoh, Perak for RM32 million with an eye to facilitate any expansion plan to be embarked on by the group in the future.

KUALA LUMPUR (Sept 3): Industrial rubber hose maker Wellcall Holdings Bhd (KL:WELLCALL) is acquiring three parcels of leasehold land in Ipoh, Perak for RM32 million.

In a filing with Bursa Malaysia on Tuesday, the group said the three parcels, with a total land area of 18.31 acres, are located within the vicinity of its existing manufacturing facilities in Kawasan Perindustrian Pengkalan II.

“The subject lands are expected to facilitate any expansion plan to be embarked on by the group in the future and provide the group with the flexibility to be able to plan ahead for any expansion of its operations required through setting up of additional new manufacturing facility(ies) without the constraints of land space,” the company said.

The deal was carried out via its wholly owned subsidiary, Wellcall Hose (M) Sdn Bhd, which entered into a conditional sale and purchase agreement with Jubilee Link Sdn Bhd.

Shares in Wellcall closed at RM1.51, down 9% from earlier this year, and giving the company a market capitalisation of RM751.9 million.