Berjaya Property proposes RM58 mil subscription for 29% stake in Manjaran

PETALING JAYA (July 17): Berjaya Property Bhd (formerly known as Berjaya Land Bhd) is proposing to subscribe for a 29% stake in Manjaran Sdn Bhd for RM58 million, which would give the property group exposure to the proposed Perlis Maritime Corridor (PMC) development, comprising the Perlis Inland Port (PIP), Perlis Sanglang Port (PSP) and Perlis Power Hub (PPH).

The transaction implies an equity valuation of about RM200 million for Manjaran, based on the subscription consideration and stake size.

In an announcement on Bursa Malaysia on Thursday, Berjaya Property said the subscription consideration was arrived at on a willing-buyer, willing-seller basis, after taking into consideration, among others, the prospects of PIP, the long-term financial viability of the PMC project and a price-to-earnings multiple of about 19 times based on an average projected profit after tax (PAT) of RM16 million per annum over a 20-year projection period.

A substantial portion of the RM58 million consideration will be satisfied through the issuance of 206.79 million new ordinary shares in Berjaya Property at RM0.28 each as consideration shares, instead of being settled fully in cash or funded through additional bank borrowings.

The company said the issuance of consideration shares would allow the group to preserve its borrowing capacity for other funding requirements and potential investment opportunities.

PIP development planned in phases

Manjaran’s cash flow projections for Phase 1 of PIP are based on assumptions including progressive revenue growth as container throughput ramps up towards full operating capacity, before stabilising at a sustainable long-term growth rate of about 2% per annum.

The projections also assume that PIP will benefit from a 10-year income tax exemption under the NCER Tax Incentives scheme.

Other assumptions include PIP continuing as a going concern, with no material disruptions to its operations, funding, regulatory environment, accounting policies or prevailing political and economic conditions that could materially and adversely affect its financial performance, cash flows or business prospects.

As at June 12, 2026, Phase 2 and Phase 3 of PIP remain in the planning stage and will be implemented progressively, subject to market conditions and future container throughput demand.

The timing of implementation for these phases cannot be determined at this stage.

Phase 1 of PIP has an estimated gross development cost of RM450.05 million and financing cost of RM41.35 million.

PSP and PPH remain at planning stage

The PMC project also includes PSP, which is planned to feature a 4km maritime trestle jetty.

Upon completion, PSP is expected to house facilities including the Langkawi Supply Base to service roll-on/roll-off vessels, Langkasuka Supply Base to support the oil and gas sector, and a bulk cargo terminal for dry and liquid bulk cargo.

Berjaya Property said these facilities are expected to generate recurring income for Manjaran through docking fees, cargo handling charges, specialised oil and gas logistics service fees, as well as long-term warehousing rental income.

Meanwhile, PPH remains in the planning stage, with its commencement date yet to be determined.

Upon completion, PPH is envisioned to generate and supply up to 5,000MW of electricity to support power demand in Northern Malaysia and Southern Thailand, while serving as an integrated energy ecosystem for PSP and PIP.

The estimated gross development cost and financing cost for Phase 2 and Phase 3 of PIP, as well as PSP and PPH, are still being assessed and cannot be determined at this juncture.

Minimal immediate impact on gearing and earnings

Based on pro forma figures, the transaction is not expected to have a material impact on Berjaya Property’s net assets and gearing for the financial year ending June 30, 2027.

The group’s net assets per share would decrease marginally from RM0.72 to RM0.70, while gearing would improve slightly from 0.84 times to 0.83 times following completion of the transaction.

The issuance of consideration shares would increase Berjaya Property’s number of shares in issue from 4.89 billion to 5.10 billion, resulting in dilution to the shareholdings of existing shareholders.

For earnings impact, Berjaya Property said the transaction is not expected to have a material effect on the group’s earnings for FY2027.

Based on a pro forma assumption that the transaction had been completed at the beginning of FY2025, the group’s loss per share would have improved slightly from 2.06 sen to 1.98 sen.

Nevertheless, the company said the proposed subscription is expected to contribute positively to future earnings upon the successful development and operation of the PMC project.

Manjaran currently loss-making

For the six-month financial period ended March 30, 2026, Manjaran Group recorded revenue of RM1.24 million and a loss attributable to owners of the parent of RM4.57 million.

The group had net assets of RM119.62 million and borrowings of RM353.57 million, resulting in gearing of 3.09 times.

The financial profile reflects the early-stage nature of the PMC-related assets, which remain subject to further development and implementation.

Berjaya Property said the transaction provides the group with an opportunity to secure an interest in the PMC project and venture into the port, logistics and energy sectors.

The proposed subscription remains subject to the fulfilment of relevant conditions as announced earlier.

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