KUALA LUMPUR (June 10): Ann Joo Resources Bhd (KL:ANNJOO) said on Wednesday its joint venture has disposed of a 62-acre industrial land parcel in Gurun Heavy Industrial Park, Kedah, in a deal worth RM119.6 million, marking its second land transaction in three months.
In a bourse filing, the steel manufacturer said its indirect subsidiary Gurun Heavy Industrial Park Sdn Bhd (GHIP), together with Transyear Sdn Bhd, had entered into an agreement with Zichen Malaysia Sdn Bhd for the disposal of the land, known as Plot 5.
Zichen is principally engaged in investment advisory services, business management consultancy, and the import and export of batteries and accumulators.
The land forms part of a 161-acre development site owned by GHIP and earmarked for industrial park development under a joint-venture agreement signed between GHIP and Transyear in December 2025.
In March, GHIP completed its first land deal, involving the sale of a 60-acre industrial parcel, for RM117.81 million cash to LB Advanced Material Asia Sdn Bhd.
Ann Joo said the latest disposal is expected to enhance future cash flow and earnings visibility. It expects to receive RM69.2 million as its share of the disposal proceeds, to be received in tranches.
Of the amount, RM33 million has been earmarked for repayment of outstanding loans within 12 months, while the remaining RM36.2 million will be used for working capital, including RM21.2 million for operating expenses such as staff and administrative costs, and RM15 million for settlement of trade and other payables.
Shares of Ann Joo settled half a sen or 1% lower at 52 sen on Wednesday, giving it a market capitalisation of RM373.8 million.