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 its new facilities had been completed and the new facilities were 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 to improve 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 its milk to its customers.

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