Ge-Shen clarifies Johor land disposal terms, expects RM12.63 mil gain

PETALING JAYA (July 10): Ge-Shen Corp Bhd has provided additional information on its proposed disposal of five freehold land parcels in Mukim Tebrau, Johor Bahru, including the rationale for a 7.26% discount to market value and an estimated pro forma gain of RM12.63 million.

In a Bursa Malaysia filing yesterday, Ge-Shen referred to its earlier announcements on Feb 4, Aug 4, Aug 5 and Dec 16, 2025, as well as July 7, 2026, relating to the proposed disposal of the properties. The transaction is classified as a non-related party transaction under Chapter 10 of the Main Market Listing Requirements.

The company said the 7.26% discount to market value was agreed on a willing buyer-willing seller basis following arm's length negotiations between the purchaser and the vendor. According to the board, the discount took into consideration, among others, the commercial objective of securing a committed purchaser and achieving certainty of completion within the agreed timeframe, thereby avoiding the uncertainty, additional holding costs and time that may be incurred in seeking alternative purchasers. It also considered the overall commercial terms of the proposed disposal, including the agreed payment terms and conditions, which the board said were favourable to the company.

Ge-Shen said the estimated pro forma gain of RM12.63 million was derived after deducting from the disposal price the audited net book value of RM20.43 million as at Dec 31, 2025, and approximately RM2.44 million in related expenses comprising payments to the relevant authorities and legal fees.

The company also confirmed that no guarantee was given to GSP in relation to the proposed disposal. Ge-Shen said a copy of the valuation report dated Nov 22, 2023 will be available for inspection by shareholders at its registered office during normal business hours for three months from the date of the announcement.

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