KUALA LUMPUR (Oct 26): Berjaya Property Bhd (KL:BPROP) has proposed to raise its stake in Manjaran Sdn Bhd to 49% by acquiring Citaglobal Bhd's (KL:CITAGLB) entire 20% stake in the integrated logistics hub developer.
The 20% interest will be acquired for RM50 million in a share-swap deal that will give Citaglobal a 3.39% stake in Berjaya Property, according to bourse filings by the two groups on Monday.
Under the deal, Citaglobal's 1.6 million shares in Manjaran will be paid for through the issuance of 178.57 million new Berjaya Property shares at 28 sen apiece.
The issue price represents a 12.86% premium to Berjaya Property’s five-day volume-weighted average market price of 24.81 sen up to Oct 23.
The deal follows Berjaya Property’s proposed RM58 million subscription for a 29% stake in Manjaran, announced on June 29. The subscription will be settled mainly through the issuance of 206.79 million new Berjaya Property shares at 28 sen per share, with the balance RM100,000 paid in cash.
Upon completion of both transactions, Berjaya Property’s stake in Manjaran will increase to 49%, while Manjaran will cease to be an associate company of Citaglobal. Citaglobal, in turn, will hold 178.57 million Berjaya Property shares, representing 3.39% of the property group’s enlarged share capital.
Manjaran is an investment holding company whose core business involves the development of the Perlis Maritime Corridor (PMC), an integrated logistics hub comprising the Perlis Inland Port, Perlis Sanglang Port and Perlis Power Hub.
Citaglobal said the disposal is expected to generate a one-off gain of RM13.39 million, based on the estimated carrying value of its investment in Manjaran of RM36.61 million as at June 30, 2026. The actual gain will be determined upon completion.
The group said the divestment would reduce its exposure to the capital requirements and investment risks associated with holding an equity stake in Manjaran, while allowing it to continue participating in the Perlis Maritime Corridor’s development as an engineering, procurement, construction and commissioning contractor.
Citaglobal intends to retain the Berjaya Property shares received as consideration, although it may sell all or part of the stake depending on market conditions. Proceeds from any subsequent sale would be used to meet its working capital requirements and fund future investments.
For Berjaya Property, the stake acquisition in Manjaran will strengthen its presence in the port, logistics and energy sectors.
The group said settling the purchase consideration through the issuance of new shares would preserve its cash resources for existing operations, other funding requirements and potential investment opportunities.
The proposed divestment is subject to the fulfilment of conditions, including the completion of Berjaya Property’s earlier subscription for a stake in Manjaran and Bursa Malaysia Securities’ approval for the listing of the consideration shares. The transaction is expected to be completed by the end of 2026.
Citaglobal shares closed one sen or 0.95% lower at RM1.04 on Monday, giving the group a market capitalisation of RM585.9 million. Berjaya Property finished unchanged at 25 sen, valuing the group at RM1.25 billion.