Berjaya Property diversifies into logistics with RM58 mil Perlis port deal

PETALING JAYA (June 29): Berjaya Property Bhd (BProperty) has proposed to subscribe for a 29% stake in Manjaran Sdn Bhd for RM58 million, in a move that gives the property group exposure to the ambitious Perlis Maritime Corridor (PMC) logistics and infrastructure project.

In a filing with Bursa Malaysia today, BProperty said it has entered into a conditional share subscription agreement with Manjaran for the proposed subscription of 2.32 million new ordinary shares, representing 29% of Manjaran’s enlarged issued share capital.

The RM58 million subscription consideration will be settled largely in shares. BProperty plans to issue 206.79 million new shares at RM0.28 apiece — amounting to RM57.9 million — and pay the remaining RM100,000 in cash.

The share issuance will be undertaken under a general mandate obtained at the company’s Dec 9, 2025 annual general meeting, which allows the board to issue new shares of up to 10% of its total issued shares, excluding treasury shares.

Once completed, the transaction will see Manjaran emerge as a substantial shareholder in BProperty with a 4.06% stake, held via the 206.79 million new shares. BProperty’s enlarged share capital with voting rights will rise accordingly.

BProperty said the proposed subscription implies a valuation of RM312.5 million for Manjaran.

According to cashflow projections for Phase 1 of the Perlis Inland Port (PIP) cited in the filing, Manjaran’s management projects the inland port to generate average profit after tax of RM16 million per year over a 20-year forecast period starting from the financial year ending Sept 30, 2027.

On that basis, the implied valuation translates into an implied price-to-earnings multiple of about 19.53 times, which the company said falls within the range of comparable listed Malaysian port operators after excluding an outlier.

A property group taps into a northern logistics corridor

Manjaran is principally an investment holding company, while its related company Mutiara Perlis Sdn Bhd is involved in the ongoing development of the PMC — described in the filing as an integrated logistics hub in Perlis built around three key components: the Perlis Inland Port (PIP), the Perlis Sanglang Port (PSP) and the Perlis Power Hub (PPH).

Situated on a 500-acre site in the Chuping Valley about 4.47km from the Malaysia–Thailand border, the PIP is intended to serve as an inland transition point for containerised cargo flows in the region.

Phase 1 of the facility commenced operations in December 2025 with an initial handling capacity of 600,000 twenty-foot equivalent units (TEUs), quadruple the previous Padang Besar Container Terminal’s 150,000 TEU capacity.

The PSP, which will stretch along the Perlis coastline from Sanglang to Simpang Ampat, is planned as the PMC’s primary deep-water maritime gateway.

According to the filing, the port is strategically sheltered by Langkawi Island, allowing for year-round operational stability and reduced maintenance costs due to minimal dredging requirements, and will feature a maritime trestle jetty of about 4km.

The PPH is envisaged as an energy infrastructure project to provide sustainable energy solutions for Northern Malaysia and Southern Thailand. The filing describes a proposed combined-cycle gas turbine plant with up to 5,000MW of generation capacity.

The PMC itself is a joint-venture project undertaken through Mutiara Perlis, which is 80% held by Mutiara Infra Sdn Bhd and 20% held by Menteri Besar Incorporation, the investment arm of the Perlis state government.

BProperty said the proposed subscription offers the group an opportunity to secure an interest in the PMC and to venture into the port, logistics and energy sectors, extending its reach beyond conventional property development.

It also noted that settling a substantial portion of the consideration via the issuance of new shares will allow the group to preserve cash for its existing operations.

Valuation, earnings impact and risk

In its Bursa announcement, BProperty cited the projected growth of Malaysia’s transportation and storage subsector and the prospects of Manjaran among the factors supporting the proposed subscription.

The company said the proposal is not expected to have any material effect on the group’s net assets and gearing for the financial year ending June 30, 2026, as completion is expected only in the second half of the year.

However, the allotment and issuance of the consideration shares will result in dilution to the group’s earnings per share.

Separately, the board said it expects the proposed subscription to contribute positively to future earnings once the PMC is fully operational, reflecting its view of the corridor’s long-term revenue potential.

BProperty also highlighted several risk factors tied to the transaction. The completion of the proposed subscription is subject to conditions precedent in the share subscription agreement, creating non-completion risk if approvals or other requirements are not satisfied within the prescribed timeframe. The group pointed to investment risks linked to market conditions and operational performance, including the PMC’s ability to generate sufficient revenue to offset its development and investment costs.

In addition, BProperty cautioned that the PMC’s financial prospects — and any eventual contribution to the group’s performance — remain sensitive to political, economic and regulatory factors. These include changes in trade volumes, logistics policies, interest rates, inflation and construction costs, all of which could affect the timing and extent of returns.

Shareholders’ agreement and approvals

Concurrently with the share subscription agreement, BProperty, Dedap Rimbun Sdn Bhd, Citaglobal Bhd and Manjaran entered into a shareholders’ agreement to govern their rights and obligations as shareholders of Manjaran, as well as the conduct of the business, management and affairs of the company.

BProperty said the proposed subscription is subject to approval from Bursa Malaysia Securities for the listing and quotation of the consideration shares on the Main Market, along with approvals from any other relevant authorities and/or parties, if required.

The company categorised the proposal as a non-related party transaction; it said none of its directors, major shareholders, chief executive or persons connected with them has any direct or indirect interest in the exercise.

Berjaya Securities Sdn Bhd, formerly known as Inter-Pacific Securities Sdn Bhd, has been appointed as the principal adviser to BProperty for the proposed subscription.

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