Tien Wah subsidiary plans RM34.07 million Indonesian factory acquisition
The proposed purchase covers a leased printing site in Malang. Three group units also secured new or extended supply arrangements with BAT.
PT Bintang Pesona Jagat (BPJ), a subsidiary of Tien Wah Press Holdings Bhd, has signed a binding agreement for a proposed factory acquisition in Malang, Indonesia. Tien Wah said the price is 150 billion rupiah (RM34.07 million), with completion expected by year end.
The seller is PT Bentoel Prima, part of British American Tobacco (BAT) Group. BPJ leases the premises for printing tobacco packaging. The property consists of five land parcels with a combined area of 5.78 acres.
In its bourse filing, Tien Wah said buying the property would avoid the need for BPJ to move when the tenancy expires. The company said the agreed consideration took account of an independent valuation of 164.65 billion rupiah and the property's importance to BPJ's current and prospective operations.
Tien Wah said it would use internal funds alongside bank financing, according to its ownership interest in BPJ. It owns 51% of BPJ; the other 49% belongs to Singapore-listed New Toyo International Ltd, Tien Wah's major shareholder. BPJ has obtained a 120 billion rupiah term loan facility from PT Bank OCBC NISP Tbk towards the purchase.
A separate filing detailed three BAT commercial agreements. BPJ received a second extension of its Bentoel Prima contract for printed cartons used for tobacco and other nicotine products in Indonesia. Tien Wah described this as a five-year extension ending in end-October 2031.
Alliance Print Technologies Co Ltd, which is wholly owned by Tien Wah, signed a five-year agreement with Bentoel Prima covering commodity supplies for BAT in Indonesia. Meanwhile, 51%-owned Max Ease International Ltd secured an extended supply arrangement with British-American Tobacco (Singapore) Pte Ltd for the period Jan 1, 2027 to October 2031.
