CYBERJAYA: DXN Holdings Bhd, a leading global manufacturer of nutraceutical products, announced that its wholly-owned subsidiary, Daxen Middle East Food Manufacturing LLC, signed a sale and purchase agreement (SPA) to acquire a residential apartment unit at Burj Khalifa, Dubai, United Arab Emirates, for AED6.4 million (approximately RM7.4 million).
The acquisition, financed entirely through internally generated funds, represents less than 0.6% of DXN’s total net assets of RM1.3 billion, as of February 28, 2025 (FY25), with no material impact on the balance sheet, and will not affect dividends, ongoing investments in research and development (R&D), or expansion plans.
This acquisition is complementary to, and does not divert resources from, DXN’s core priorities in R&D, manufacturing, and market expansion.
The property will serve as a member reward and training hub, complementing DXN’s existing facilities in Penang and Cyberjaya.
It will be used for leadership development, incentive programmes, and VIP events. It also offers potential rental income and capital appreciation.
Since the transaction involved related parties, not all interested directors participated in the discussions or voting.
The audit committee reviewed the terms independently and found them fair and reasonable.
The approval was given only by the non-interested directors, in accordance with Bursa Malaysia’s rules.
Dubai is an increasingly important hub for DXN, with its manufacturing plant established in 2023 and the Middle East contributing over 10.0% of the Group’s revenue in FY25.
This acquisition strengthens DXN’s long-term commitment to member engagement and growth in the region.