WCT to acquire remaining 30% equity interest in Jelas Puri from EPF for RM140m

PETALING JAYA (July 31): WCT Holdings Bhd will acquire the remaining 30% equity interest in Jelas Puri Sdn Bhd (JPSB) from the Employees Provident Fund (EPF) for RM140 million, resulting in full ownership of the company that developed the integrated Paradigm Petaling Jaya project.

In a Bursa Malaysia filing on Friday (July 31), under Chapter 10 of the Main Market Listing Requirements, the group said its wholly owned subsidiary, WCT Land Sdn Bhd (WCTL), had entered into a share sale agreement (SSA) with EPF to acquire 93 million ordinary shares, representing EPF's 30% equity interest in JPSB.

The purchase consideration will be satisfied entirely through internally generated funds.

Upon completion, JPSB will become an indirect wholly owned subsidiary of WCT, increasing WCTL's equity interest from 70% to 100%.

Greater flexibility

WCT said the acquisition would provide the group with greater flexibility in managing JPSB and undertaking future corporate exercises, including restructuring or rationalisation, without requiring approval from a joint venture partner.

JPSB's principal activities are property investment, management and development. The company developed the integrated Paradigm Petaling Jaya project in Kelana Jaya, comprising The Ascent Office Tower, Le Méridien Petaling Jaya Hotel, Paradigm Mall Petaling Jaya, The Azure Residences and Sapphire Paradigm.

Paradigm Mall Petaling Jaya was divested to Paradigm Real Estate Investment Trust (Paradigm REIT) in June 2025.

JPSB continues to own Le Méridien Petaling Jaya Hotel and 230 million units in Paradigm REIT.

For the financial year ended Dec 31, 2025, JPSB recorded revenue of RM101.22 million, a net loss of RM7.51 million and net assets of RM191.25 million.

Financial impact

WCT said the acquisition is expected to result in the group recognising a pro forma net loss of approximately RM66.6 million, primarily due to the impairment of goodwill.

Based on the pro forma effects, the group's net assets would decrease from RM3.346 billion to RM3.279 billion, while its gross and net debt-to-equity ratios would increase from 0.64 times and 0.48 times to 0.70 times and 0.57 times, respectively.

The group would also record a pro forma loss per share of 1.19 sen, compared with earnings per share of 3.08 sen previously.

Conditions and completion

Completion is conditional upon JPSB obtaining written consent from Malaysian Trustees Bhd, acting as trustee and security trustee under JPSB's RM500 million medium-term note programme, within two weeks from the date of the SSA.

It is expected to be completed within five business days after the SSA becomes unconditional. Barring unforeseen circumstances, the acquisition is expected to be completed by early August 2026.

The acquisition is not subject to shareholders' approval or approvals from any governmental or statutory authorities. The highest percentage ratio applicable to the transaction is 7.12%.

The board is of the opinion that the acquisition is in the best interests of the company. It added that none of the directors, major shareholders or persons connected with them has any direct or indirect interest in the transaction.

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