Leader Steel circulates RM136.56 mil Kapar land disposal proposal

KUALA LUMPUR (July 4): Leader Steel Holdings Bhd has issued a circular to shareholders on the proposed disposal of a parcel of freehold land in Kapar, Klang, by its wholly‑owned subsidiary FerroNet Asia Sdn Bhd to WG Malaysia VIII Sdn Bhd for RM136,560,315 in cash.

It said in a Bursa filing yesterday that the land, held under H.S.(D) 166443, PT 85118 in Mukim Kapar, measures approximately 13.35 hectares and is classified for “Industri” use with an express condition of “Industri Sederhana”. It is currently vacant and is charged twice to Hong Leong Bank Bhd.

The disposal price was arrived at on a willing‑buyer willing‑seller basis at about RM95 psf, after taking into consideration an independent valuation by Savills (Malaysia) Sdn Bhd, which assessed the property at approximately RM137 million. The valuation adopts a comparison approach and is premised on highest‑and‑best‑use potential, including data centre and information technology infrastructure use.

The transaction is classified as a related‑party transaction under Paragraph 10.08 of Bursa Malaysia’s Main Market Listing Requirements due to the involvement of certain directors, major shareholders and persons connected with them as disclosed in the circular.

Leader Steel intends to utilise the proceeds as follows: RM56.21 million for repayment of borrowings, RM38.71 million for working capital, RM25 million for future acquisitions or assets, RM12 million for expenses including real property gains tax, and RM4.64 million for a proposed special dividend of about 3 sen per share.

On a pro forma basis, the group expects a net gain attributable to shareholders of RM11.45 million. Net assets per share are projected to rise from RM2.21 to RM2.29, while gearing is expected to fall from 0.18 times to 0.02 times following debt repayment and proceeds deployment.

An extraordinary general meeting will be held on July 20, 2026, at Wisma Leader Steel in Bukit Tengah, Penang, for non‑interested shareholders to vote on the resolution. Independent adviser DWA Advisory Sdn Bhd has stated that the transaction is fair and reasonable and is not detrimental to non‑interested shareholders, and recommends approval.

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