KUALA LUMPUR (Oct 9): Astral Asia Bhd (KL:AASIA) is exploring the sale of 2,433 acres of land at the Kuantan Hi-Tech Park in Pahang to HNG Capital Sdn Bhd for RM233.57 million. HNG Capital was formerly known as Leader Universal Holdings Bhd before the group was taken private by the H’ng family in 2011. The proposed disposal could pave the way for solar farm and green energy development.

In a bourse filing on Friday, the diversified group said that its subsidiary Astral Asia Plantation Sdn Bhd (AAP) had entered into a memorandum of understanding (MOU) with HNG Capital for the proposed disposal. The land accounts for about 25% of Astral Asia’s total land area.

Under the MOU, HNG Capital has been granted exclusivity to conduct due diligence on the land and may terminate the agreement if its findings are unsatisfactory, Astral Asia said.

HNG Capital is required to pay an interim deposit of RM2.34 million, equivalent to 1% of the indicative purchase price, to the landowner’s solicitors as stakeholders within seven business days of the MOU’s execution.

Tasja Development Sdn Bhd, a wholly-owned subsidiary of Astral Asia, holds an active power of attorney from AAP, authorising it to act on the plantation unit’s behalf in facilitating and negotiating the proposed transaction.

"The proposed disposal would allow Astral Asia to unlock value from its real estate portfolio and redeploy the proceeds into future land acquisitions," managing director Lim Guan Shiun said in a statement.

The transaction forms part of the group’s broader strategy to monetise mature real estate assets and reinvest capital in land acquisitions to support long-term growth across its core businesses, it said.

Astral Asia shares rose one sen or 9.09% to close at 12 sen on Friday, valuing the group at RM83.08 million. The stock has gained 20% so far this year.