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Venture Corp unit acquires property in California for US$29.37m
CONTRACT Manufacturer Venture Corporation's subsidiary Venture Enterprise Innovation (VEI) has entered into a sale and purchase agreement with S&S (Barber), LLC to acquire a freehold property in Milpitas, California for US$29.37 million.
The proposed acquisition will be funded entirely by internal resources, and VEI has paid a US$500,000 deposit to an independent escrow agent, who shall hold the deposit on escrow pending the completion of the deal, the company said.
The agreement however, is conditional upon customary closing conditions, and is expected to be completed by Feb 9.
Located at 481 Cottonwood Drive, the US property has a land area of approximately 9.64 acres, and an industrial built-up area of about 182,405 sq ft. Upon completion of the proposed acquisition, VEI plans to renovate and refurbish the space.
The group believes that the acquisition of this property will augment its presence and image in the US. According to Venture Corp, this land will be used for activities linked to a new platform enterprise that will enable the group to participate in new technologies; develop an ecosystem in the US to foster innovation with business partners; and transform the group into a next-generation provider of high-tech solutions.
The proposed acquisition is not expected to have any material impact on the net earnings per share, or the net tangible assets per share of the group for the financial year ending Dec 31, 2018, the company said.
None of the directors or controlling shareholders of the company has any interest in the proposed deal, save for their respective shareholdings in the company, Venture Corp added.
The counter traded 1.49 per cent, or 34 Singapore cents, higher to close at S$23.15 on Thursday. Some 1.58 million shares changed hands.