Eonmetall issues circular on RM273.28 mil Kapar land disposal

KUALA LUMPUR (July 4): Eonmetall Group Bhd is proposing to dispose of parcels of freehold land in Kapar, Klang, for RM273,275,005 in cash, according to a circular to shareholders. The disposal is undertaken via its wholly-owned subsidiary Eonmetall Land Sdn Bhd to WG Malaysia VIII Sdn Bhd.

The land, held under Geran 455284 (Lot 119910) and Geran 455285 (Lot 119911), Mukim Kapar, covers approximately 26.723 hectares and is zoned “Industri” with an express condition of “Industri Sederhana”. It is currently vacant.

The titles are charged in favour of Bank of China Malaysia Bhd and remain subject to a private caveat lodged by the same bank.

The disposal price was agreed on a willing-buyer willing-seller basis at about RM95 per sq ft, taking into account an independent valuation by Savills (Malaysia) Sdn Bhd, which valued the property at approximately RM273 million as at March 6, 2026. The valuation is based on a comparison approach and reflects highest-and-best-use potential, including data centre and IT 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 to them.

Eonmetall intends to use the proceeds for RM108.52 million in borrowings repayment, RM86.28 million for working capital, RM60 million for future acquisition of assets or businesses, and RM18.48 million for estimated expenses, including real property gains tax.

On a pro forma basis, the group expects a net gain attributable to shareholders of about RM46.30 million. Net assets per share are projected to rise from RM0.82 to RM0.86, while gearing is expected to fall from 0.65 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 WYNCORP Advisory Sdn Bhd has deemed the proposal fair and reasonable and not detrimental to non-interested shareholders, and recommends approval.

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