KUALA LUMPUR (Aug 5): Citaglobal Bhd (KL:CITAGBL) is to acquire a 12.8% indirect interest in the master developer of the Perlis Maritime Corridor (PMC) in a RM40 million deal involving the issuance of new shares.

In a bourse filing on Tuesday, Citaglobal said the deal will see the company acquire a 20% stake in Manjaran Sdn Bhd, an indirect shareholder of PMC's master developer Mutiara Perlis Sdn Bhd, from Dedap Rimbun Sdn Bhd.

Dedap Rimbun is owned by Datuk Shabaruddin Ibrahim and family. Shabaruddin is also group executive chairman of Mutiara Perlis.

The transaction, to be covered by the issuance of 9% of the group’s enlarged share base, will result in Dedap Rimbun emerging as Citaglobal’s second-largest shareholder.

A block of 42.105 million shares, representing 9% of the group’s enlarged share base, at 95 sen apiece, is to be issued to Dedap Rimbun. The stake is set to make Dedap Rimbun the second largest shareholder of Citaglobal, behind executive chairman and president Tan Sri Mohamad Norza Zakaria with 29.88% (based on enlarged share base) via vehicle TIZA Global Sdn Bhd.

Post-transaction, the Sultan of Pahang Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah’s stake in Citaglobal is projected to be diluted to 8.85% from 9.72%, while both Kenanga Islamic Absolute Return Fund and Datuk Seri Raja Mufik Affandi Raja Khalid will cease being substantial shareholders.

Citaglobal said the acquisition represents an opportunity for the company to expand into the port infrastructure and logistics business.

“Our involvement and investment in the PMC aligns with our broader vision to emerge as one of Malaysia’s leading players in infrastructure development and energy transition,”  Mohamad Norza said in a separate statement.

Manjaran owns an 80% stake in Mutiara Infra Sdn Bhd, which in turn owns an 80% stake in Mutiara Perlis. The 20% direct interest in Manjaran represents a 12.8% effective interest in Mutiara Perlis.

Mutiara Perlis is an 80:20 joint venture between Mutiara Infra and the Perlis state government, via Menteri Besar Inc Perlis.

The proposed consideration of RM40 million for the 12.8% effective interest in Mutiara Perlis values the joint  venture at an implied valuation of RM312.5 million.

The PMC is a logistics hub project consisting of the Perlis Inland Port (PIP), the Perlis Sanglang Port, and the Perlis Power Hub, carrying a gross development cost of US$6.5 billion (RM27.8 billion).

“To date, the federal government, through the Northern Corridor Implementation Authority, has invested almost RM400 million to develop the external infrastructure supporting the PIP,” Citaglobal said.

Construction of Phase 1 was completed, and a commissioned trial began in July 2025, with commercial operations targeted for September 2025.

Citaglobal’s wholly owned unit, Citaglobal Land Sdn Bhd, was the engineering, procurement and construction (EPC) contractor for Phase 1 in August 2022 with a contract value of RM373.5 million.

“Our equity investment enhances our prospects for future EPC contracts related to the PMC, strengthening our portfolio in the engineering and construction sector,” Mohamad Norza said.

The deal is expected to be completed by the third quarter of 2025. It is subject to approval from Bursa Securities and other relevant regulatory authorities.

Shares in Citaglobal ended one sen or 1.23% lower at 80.5 sen, valuing the group at RM342.55 million.