KUALA LUMPUR (Oct 30): Mudajaya Group Bhd (KL:MUDAJYA) is disposing of four parcels of freehold land in Ijok, Selangor, for RM36.8 million as part of its efforts to monetise non-core assets and strengthen its cash position.
The group expects to record a disposal gain of RM24.06 million for the financial year ending Dec 31, 2025 (FY2025), with completion targeted for the first quarter of 2026.
Proceeds will be used mainly for working capital and other operational needs, its bourse filing on Thursday showed.
Mudajaya's subsidiary Mudajaya Corporation Bhd inked a sale and purchase agreement with Serba Wangi (KL) Sdn Bhd on Thursday for the disposal of the four lots, with a combined area of about eight hectares. They are located along Bukit Badong Road in Ijok.
Serba Wangi is principally involved in the manufacturing and sale of rice, sugar and flour, besides transportation services.
The disposal will be carried out on an “as-is, where-is” basis, inclusive of buildings but excluding all plant and machinery currently on site.
Mudajaya said the consideration reflects prevailing market rates. No formal valuation was commissioned for the transaction.
Following the sale, its gearing ratio is projected to improve slightly to 1.13 times from 1.19 times.
As of June 30, 2025, the group’s total borrowings stood at RM619.07 million, comprising RM293.9 million in long-term loans and RM325.16 million in short-term loans. The weighted average interest rate of its borrowings was 6.14% per annum.
Mudajaya’s cash and bank balances totalled RM172.46 million as at end-June 2025.
It proposed a private placement in July involving up to 10% of its enlarged share base to raise as much as RM25.96 million. The placement was done mainly to pare down borrowings.
Shares of Mudajaya closed up 0.5 sen or 5.56% to 9.5 sen on Thursday, giving the group a market capitalisation of RM252.5 million.