Tanco seeks shareholder approval for RM88.5 mil Port Dickson Free Zone land acquisition

PETALING JAYA (May 30): Tanco Holdings Bhd is seeking shareholder approval to acquire a 300-acre parcel of land in Port Dickson for RM88.5 million and to provide up to RM250 million in funding and guarantees for the first phase of the proposed Port Dickson Free Zone (PDFZ) development.

In a filing with Bursa Malaysia yesterday (May 29), the group said its 80%-owned subsidiary, PDFZ Sdn Bhd (PDFZSB), proposes to acquire a freehold parcel measuring about 121.41ha in Mukim Pasir Panjang, Port Dickson, from SD Guthrie Bhd at RM6.77 psf.

The land forms the first 300-acre tranche of the proposed PDFZ, an industrial development planned within the Malaysia Vision Valley 2.0 (MVV 2.0) corridor and near the proposed Midport Smart AI Container Port.

To facilitate the acquisition and the development of the project's first phase, Tanco is also proposing to provide financial assistance of up to RM250 million to PDFZSB in the form of shareholder advances and corporate guarantees.

The proposed acquisition and financial assistance are inter-conditional and subject to shareholders' approval at an extraordinary general meeting to be convened.

Tanco said PDFZSB is jointly owned by its wholly owned subsidiary Tanco Land Sdn Bhd and Menteri Besar Negeri Sembilan (Incorporated) (MBINS), with equity interests of 80% and 20% respectively.

According to the company, the first phase of PDFZ is envisaged as a five-year industrial park development comprising infrastructure works, warehouses, factories and subdivided industrial lots.

Tanco said Phase 1 has an indicative gross development value (GDV) of approximately RM350 million and a gross development cost (GDC), including land cost, of about RM243 million for the sale of industrial lots with infrastructure works.

An independent valuation by Henry Butcher Malaysia NS Sdn Bhd assessed the land at RM89 million as at March 10, 2026, using the comparison method, which is marginally above the proposed acquisition price.

Under the joint-venture arrangement, MBINS is entitled to receive a fixed RM30 million over time. Upon full settlement of that entitlement, MBINS will transfer its entire stake in PDFZSB to Tanco Land for RM1, resulting in PDFZSB becoming a wholly owned subsidiary of Tanco.

On a pro forma basis, assuming 85% of the land acquisition is funded through borrowings, Tanco's gearing would increase to 0.34 times from 0.13 times, while net assets per share would remain unchanged at seven sen.

The company said no development application has been submitted for the land as at April 30, 2026, and that approvals will be sought following completion of the proposed acquisition.

Tanco said the proposals would enable the group to establish a presence in the industrial and logistics property segment and participate in development opportunities arising from MVV 2.0, the New Industrial Master Plan 2030 and other manufacturing-related initiatives.

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