Dutch Lady Milk Industries to dispose factory land, buildings for RM200 mln

KUALA LUMPUR: KUALA LUMPUR, March 10 (Bernaam) -- Dutch Lady Milk Industries Bhd (DLMI) has signed a conditional sale and purchase agreement (SPA) with UEM Land Bhd to dispose its current factory land together with the buildings thereon in Petaling Jaya, Selangor for RM200 million.

In a filing with Bursa Malaysia today, it said the buildings which are currently occupied by DLMI for its factory operations will continue to be occupied by the company as a tenant for two years following the completion of the SPA.

DLMI will continue its manufacturing activities on the property until the construction of the new facilities have been completed and the new facilities are fully operational.

"Accordingly, the proposed disposal, the land acquisition in Bandar Enstek, Seremban in Negeri Sembilan (announced on Dec 17, 2020) and DLMI's investment in the facilities (expected completion around three years from 2021) are all in line with DLMI's long-term plans of improving its manufacturing capabilities," it said.

It said the move is to keep up with the demand for its products and new consumer trends which will strengthen its ability to provide the goodness and nutritional value of milk to its customers.

The expected net gain to DLMI arising from the proposed disposal is RM178.6 million.

-- BERNAMA