Farlim seeks nod to redirect RM20.9m of Gopeng land-sale proceeds

PETALING JAYA (Aug 13): Farlim Group (Malaysia) Bhd is seeking shareholders’ approval to redirect RM20.92 million of unutilised proceeds from its Gopeng land disposal towards property development projects and working capital.

It said in a Bursa Malaysia filing on Wednesday that the proposed variation is the second revision to the use of proceeds from the RM33 million disposal, which was completed on June 10, 2025. Farlim had originally allocated RM32.32 million for new landbank acquisitions and RM680,000 for disposal-related expenses, before redirecting RM8 million to general working capital in December 2025.

As at July 31, 2026, RM25.95 million of the disposal proceeds remained unutilised, according to the company’s circular to shareholders.

Under the latest proposal, RM20.92 million would be redirected from the remaining landbank allocation. Of this, RM15 million would partly finance Farlim’s ongoing and proposed property developments, RM3.42 million would be used for general administrative and operating expenses, and RM2.5 million for staff-related expenses.

The proposal would increase the amount available for working capital to RM22.89 million, from an unutilised balance of RM1.97 million, while RM3.06 million of unutilised proceeds would remain for landbank acquisition.

The developments to be partly funded comprise projects in Bidor, Perak and Balik Pulau, Penang, as well as proposed developments in Bandar Baru Ayer Itam and Mukim 13 in Penang, and Kapar, Selangor.

The Bandar Baru Ayer Itam project is planned as a 21-storey commercial development comprising 100 executive suites and four shoplots, with an estimated gross development value (GDV) of RM122.38 million.

The Mukim 13 project is a proposed mixed commercial development comprising commercial units, semi-detached shops and bungalow shops, with an estimated GDV of RM182.30 million. Both projects are scheduled to commence in the first quarter of 2027.

The proposed Kapar development is a freehold housing scheme comprising 20 two-storey terrace houses, with an estimated GDV of RM15.57 million.

RM3.4m Kapar land acquisition

Separately, Farlim disclosed in the circular that its wholly owned subsidiary Bandar Subang Sdn Bhd had on June 30 entered into a conditional sale and purchase agreement with Top Glove Sdn Bhd to acquire 20 freehold residential plots in Mukim Kapar, Klang, for RM3.4 million.

The plots, held under Title Nos H.S.(M) 32838 to H.S.(M) 32857 and Lot Nos PT 50022 to PT 50041, have a combined land area of approximately 37,899.61 sq ft (0.87 acre) and come with an approved development plan, Farlim said.

The group has paid a RM340,000 deposit using proceeds from the Gopeng disposal, while the remaining RM3.06 million is payable within three months after the conditional SPA becomes unconditional. Completion is expected in the fourth quarter of 2026.

According to Farlim, the acquisition is conditional, among others, on Top Glove procuring the previous owner’s agreement to novate specified Klang land office approvals to Bandar Subang.

Farlim said the Kapar acquisition did not require a separate Bursa announcement as its highest applicable percentage ratio was approximately 2.98%.

The group said the proposed variation would enable it to deploy proceeds that would otherwise remain unutilised for its development pipeline, while reducing the need to use bank borrowings or internally generated funds.

Farlim is scheduled to seek shareholders’ approval for the proposed variation at an extraordinary general meeting on Sept 9.

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