Sidel Industry Malaysia -Closed Operation

Sprtizer Announces Acquisition Of Land By Subsidiary
KUALA LUMPUR, Sept 11 (Bernama) -- Spritzer Bhd's wholly-owned subsidiary, Chuan Sin Sdn Bhd, has entered into a sale and purchase agreement with Sidel Distribution (Malaysia) Sdn Bhd to acquire a freehold industrial land in Shah Alam for RM32.50 million.The said property, measuring 31,386 square meters, included a single-storey detached factory building with an annexed double-storey office building, a compressor room, a Tenaga Nasional substation and a guardhouse.The property is occupied by Sidel to manufacture plastic bottle blow moulding machines used by the beverage industry, Spritzer said in a filing to Bursa Malaysia here Friday.Sidel bought the industrial land, located near Proton Bhd, Nissan Industrial Oxygen, Sharp and Shin-Etsu Polymer (M) Sdn Bhd, for RM41.4 million in June 2007.In 2008, the net book value of the land was about RM39.43 million but the open market price, as at Aug 24, 2009 was estimated by valuers at RM37 million.Hence, Spritzer said the purchase consideration of RM32.5 million represented a discount of 12 per cent.It also said about RM28.76 million of the consideration sum is expected to be funded via borrowings and the remainder from internally generated funds.Meanwhile, Sidel, a wholly-owned subsidiary of Sidel Participations of France, is involved in the marketing, promotion and sale of machines, parts and components for PET bottles used for soft drinks and water.Spritzer said the proposed acquisition was intended to facilitate the setting up of a bottling facility for the manufacture of drinking water which would allow the company to increase its production capacity of bottled water to meet expected demand in the Klang Valley and central Malaysia.The bottling facility, involving additional commitment of RM30 million, is expected to have a capacity of 18 million litres per month and will commence operations in the fourth quarter of the financial year ending May 31, 2010.Spritzer said the proposed acquisition was expected to be completed in the third quarter of the current financial year.-- BERNAMA