Orgabio Manufacturing, a wholly-owned subsidiary of Orgabio Holdings (KLSE:ORGABIO), has agreed to acquire a piece of freehold land measuring 5,263 sq m in Selangor, Malaysia, from Chung Lian Fatt for 11.3 million ringgit, according to a Thursday filing with the Malaysian stock exchange.
The company's shares were down nearly 2% in Friday's trade.
The 19-year-old building in Semenyih is being used as badminton courts, which the company plans to convert for warehousing.
The purchase price will be paid in cash, financed through a combination of internally generated funds of 2.3 million ringgit and bank borrowings of nearly 9 million ringgit.
The instant beverage premixes manufacturer said the site was suitable for the company's warehouse due to its strategic location adjacent to the company's new factory at Sungai Purun, Semenyih.
The proposed acquisition is expected to be completed by the fourth quarter of 2026.