KUALA LUMPUR (July 10): Loss-making MUI Properties Bhd (KL:MUIPROP), in which Malayan United Industries Bhd (KL:MUIIND) owns a 23.48% stake, is selling 53 acres of freehold land in Port Dickson, Negeri Sembilan, for RM80.8 million cash.
MUI said its wholly owned subsidiary Peristal Enterprise Sdn Bhd via its 60%-owned unit West Synergy Sdn Bhd entered into a sale and purchase agreement (SPA) with Antmed Malaysia Sdn Bhd for the disposal of the land located at Bandar Springhill, according to a filing on Wednesday.
Antmed Malaysia is owned by Shenzen Antmed Company Ltd, a Chinese company that develops and manufactures advanced medical devices.
The land is currently categorised as agricultural land, and the buyer will be converting it to the medium industrial category.
Meanwhile, MUI is expecting to gain RM16.58 million (before tax and non-controlling interest) from the proposed disposal, which is scheduled to be completed in the fourth quarter of 2025.
The RM7.56 million disposal gain (after tax and non-controlling interest) is also expected to improve MUI’s earnings for the financial year ending June 30, 2026 (FY2026).
West Synergy bought the land at RM2.02 million in January 1995. As at June 30, 2023, its audited net book value was RM5.13 million.
MUI, whose share price gained 12.5% year-to-date, said the proposed disposal aims to develop its township project in Bandar Springhill into a leading medical hub by leveraging Antmed's expertise and resources.
“Antmed's presence could attract other healthcare-related investments, creating a robust ecosystem. Their involvement will serve as a catalyst for further development and growth, spurring infrastructure improvements, job creation, and economic activity, thereby contributing to the overall development of Springhill,” it said.
The group said the proceeds from the disposal would be partially used for the development of the land as stated in the SPA and to cover the associated expenses, which are expected to be incurred within 18 months from the date of this agreement.
The remaining balance will be used as working capital by West Synergy, it added.
Shares of MUI closed half a sen or 2.27% higher at 22.5 sen on Wednesday, valuing the group at RM168.18 million.