Pekat acquires Nilai industrial land plots for RM30.58 million

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Pekat buys Nilai industrial land

Highlights

EPE Switchgear (M) Sdn Bhd, Pekat’s 60%-owned subsidiary, bought six industrial land plots in Nilai from Sime Darby Property (Nilai) Sdn Bhd for RM30.58 million.
The acquisition of 38,108 square metres of land supports Pekat’s expansion plans in switchgear manufacturing, battery energy storage systems, transformers and substations.
Pekat shares fell eight sen, or 2.73%, to RM2.85 at Monday’s midday break, giving the group a market value of RM2.02 billion.

This article was translated from the original. Read the original version by our correspondent here.

Acquisition details and planned use

According to The Edge Malaysia, as reported in the group’s exchange filing, Pekat’s 60%-owned indirect subsidiary, EPE Switchgear (M) Sdn Bhd, signed six separate sale and purchase agreements with Sime Darby Property (Nilai) Sdn Bhd on 30 Oct to acquire the plots.

The six adjoining freehold plots have a combined land area of 38,108 square metres and form part of the Bandar Hamilton Nilai industrial development, Plot 5. The land is designated for industrial use.

Pekat said the acquisition supports the group’s expansion plans, as EPE Switchgear’s existing premises in Nilai lack sufficient capacity to accommodate planned growth. The land will house EPE Switchgear’s existing switchgear manufacturing operations, as well as the group’s battery energy storage systems, transformer and substation businesses.

Financial and operational impact on the group

Pekat said the purchase would be funded through internal funds and/or bank loans. The acquisition is also expected to provide long-term tenure security for the group’s operations at the site.

Vacant possession of the land is expected to be delivered within 48 months from the date of the sale and purchase agreements, after which the acquisition is expected to be completed. As at the end of June 2026, Pekat had RM81.68 million in cash and bank balances, as well as RM1.1 million in fixed deposits with licensed banks, while total borrowings stood at RM180.6 million.

At Monday’s midday break, Pekat shares fell eight sen, or 2.73%, to RM2.85, giving the group a market value of RM2.02 billion.

In our earlier article on Land 33 Bhd’s proposed expansion of its land bank in Penang, the company planned to buy 1.05 acres of land in George Town for RM32.3 million in cash. We reported that the acquisition was expected to be funded through a combination of internal funds and bank loans, with the aim of adding to its land reserves for future development in a strategic location.

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