Rapid Synergy reveals land disposal involves freehold parcel in KL worth RM39m

• Rapid Synergy said the land in question is a freehold piece of land that was amalgamated from three parcels in Sri Hartamas here. The company did not however say how big the land was.

KUALA LUMPUR (Jan 23): Industrial mould manufacturer Rapid Synergy Bhd has revealed that the land disposal it had mentioned in an earlier response to an unusual market activity (UMA) query from Bursa Malaysia is in its final stage, with a price tag of RM39 million.

Bursa Malaysia has requested that Rapid Synergy provide further information on the proposed land disposals, namely the identities of the properties including the location and total size, current stage of negotiations, indicative timeline to finalise the disposals, indicative or range of the purchase consideration and their materiality pursuant to Paragragh 10.02(g) of the Main Market Listing Requirements.  

In its response, Rapid Synergy said the land in question is a freehold piece of land that was amalgamated from three parcels in Sri Hartamas here. The company did not however say how big the land was.

Rapid Synergy said negotiations are in the final stage, with the sale and purchase agreement (SPA) for the transaction finalised for approval by the company’s board and the purchaser. The SPA is expected to be concluded on Jan 23.  

It added that the land disposal is expected to be completed by the first quarter of 2024.

Previously, Bursa Malaysia issued a UMA query on Jan 10 and Rapid Synergy replied on the following day and said its management is currently considering proposals to sell certain landed properties of the company and its subsidiaries.

Rapid Synergy — in which prominent investor Datuk Dr Yu Kuan Chon holds a 22.8% stake — closed at limit down of RM1.95, after it plummeted 83 sen or 29.86%, giving the stock a market capitalisation of RM208 million.

Rapid Synergy’s share lower limit was frozen as the group traded at static limit down prices for two consecutive days. Accordingly, Bursa Securities has set the lower limit share price for Rapid Synergy at RM1.95 for Jan 23.

Year-to-date, the battered stock has plunged 93% or RM26.53. Some RM2.81 billion market capitalisation has eroded.

Rapid Synergy’s net profit has been trending down over the past three years. It made a net profit of RM1.74 million for the 18 months ended June 30, 2023 (FY2023), much lower than the net profit of RM3.46 million for FY2021 and RM5.2 million for FY2020 despite the expanded financial period due to the group's change in financial year-end to June 30 from Dec 31. 

The company kicked off FY2024 with a net profit of RM13.85 million for the three months ended Sept 30, 2023, boosted by a gain from the disposal of investment properties.

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