Kuala lumpur: Mynews Holdings Bhd's wholly owned subsidiary, Mynews Retail Sdn Bhd, has entered into a sale and purchase agreement (SPA) with Thung Hing Metal Industry Sdn Bhd to acquire 13.5 acres of leasehold industrial land in Rawang, Selangor, for RM24.70 million.

According to BERNAMA News Agency, the convenience store operator announced in a Bursa Malaysia filing that this land purchase, with the lease set to expire on January 4, 2095, is a strategic investment aimed at supporting its long-term operational and business expansion plans. The focus is particularly on the construction of a new distribution centre.

The company highlighted that the need for a new distribution centre arises as its current facility is operating at constrained capacity, leaving insufficient room for future growth. "Securing the land now lets the company move ahead with construction, address capacity constraints, and avoid rising land costs or the shrinking availability of suitable sites," the company stated. The new centre is expected to enhance supply chain efficiency, strengthen the company's asset base, and support continued business expansion over the medium to long term.

Mynews further elaborated that the purchase consideration was determined on a willing-buyer willing-seller basis, factoring in publicly available transaction data and indicative asking prices of comparable industrial land in the surrounding area. The acquisition will be financed through a combination of internal funds and bank borrowings, with 15 per cent funded internally and the remainder through borrowings.

The company assured that the acquisition is not expected to affect Mynews' share capital and substantial shareholding structure nor materially impact the company's earnings for the financial year ending October 31, 2026. "Barring any unforeseen circumstances, the proposed acquisition is expected to be completed within 12 months from the date of the SPA," it concluded.