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Nordic Group has signed an option to purchase (OTP) to acquire an industrial property in 2 Tuas Avenue 10 from Microdyn-Nadir Singapore for $6.2 million, revealed an SGX filing on Friday (5 January).
The Singapore-listed construction engineering firm said the property consists of a 5,677.9 sq m land in PTE LOT A3006194 as well as all plant and equipment standing on it. The site has a leasehold tenure of 30 years that started from 16 December 1989, but JTC granted an option to extend it by another 30 years commencing from 16 December 2019.
“The acquisition is a strategic move. The property is directly opposite the newly acquired subsidiary Ensure Engineering and this will enable the group to consolidate three of its units together under one roof, vis-à-vis the present situation where these subsidiaries are located at two different locations,” it explained.
With this new set-up, the management will not only be able to improve their oversight, but will also enhance operational efficiencies and foster closer teamwork among personnel.
Moreover, Nordic Group noted that the purchase consideration accounts for only 2.79 percent of its market value of approximately $222.12 million. This is based on its weighted average share price of $0.565 on 4 January, the last market day before the announcement of the acquisition.
The proposed acquisition, which will be funded by bank loans, is not expected to have a material impact on the company’s earnings and net tangible asset per share.
This article was edited by Keshia Faculin.
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