MUI Properties to dispose of Springhill industrial land for RM18.73m

PETALING JAYA (July 21): MUI Properties Bhd is selling a 49,725 sq m (535,235 sq ft) parcel of freehold industrial land within Springhill Industrial Park, Bandar Springhill, Port Dickson, Negeri Sembilan for RM18.73 million in cash, a transaction expected to generate an estimated RM10.87 million net gain.

The company said in a Bursa Malaysia filing on Monday that its indirect 60%-owned subsidiary, West Synergy Sdn Bhd, had entered into a sale and purchase agreement with Antmed Malaysia Sdn Bhd for the disposal of the land held under H.S.(D) 46450, PT 2370, Pekan Jemima.

The land has an audited net book value of RM4.36 million as at June 30, 2025, while its original acquisition cost in 1995 was RM497,902, according to a Bursa Malaysia filing.

MUI Properties said the disposal price was arrived at on a willing buyer-willing seller basis after negotiations between the parties, taking into consideration recent land transactions within Bandar Springhill.

The company expects to record an estimated gross disposal gain of RM14.30 million and a net gain after tax of RM10.87 million, with RM6.52 million attributable to MUI Properties based on its 60% interest in West Synergy. The remaining RM4.35 million would accrue to Chin Teck Plantations Bhd, which owns the other 40% stake in the subsidiary.

Of the proceeds, RM15.22 million will be used for working capital requirements and infrastructure works in Bandar Springhill over the next 18 months, while RM3.43 million has been earmarked for estimated tax arising from the disposal and RM80,000 for transaction-related expenses.

MUI Properties said the disposal supports its strategy announced in 2024 to position Bandar Springhill as a medical hub. It added that Antmed's acquisition of another parcel within two years of its initial purchase underscores the purchaser's continued commitment to the township, while the transaction is expected to strengthen West Synergy's earnings and working capital.

Antmed Malaysia, incorporated in July 2024, is principally involved in research and development in medical sciences and is wholly owned by Hong Kong Antmed Limited.

On a pro forma basis, the group's net assets attributable to owners would increase to RM370.6 million from RM364.1 million, while net assets per share would improve to 50 sen from 49 sen. Based on its financial year ended June 30, 2025, pro forma earnings per share would increase to 1.15 sen from 0.27 sen, after taking into account the estimated disposal gain.

The proposed disposal carries a highest percentage ratio of 5.15% under Bursa Malaysia's Main Market Listing Requirements and does not require shareholders' approval. Barring unforeseen circumstances, the transaction is expected to be completed in the first quarter of calendar year 2027.

..........

Read about emerging trends, data-backed insights, growing subsectors, and expert commentaries in EdgeProp print. Subscribe now for your free copy!