KUALA LUMPUR (Oct 29): SD Guthrie Bhd (KL:SDG) has partnered with YTL Power International Bhd (KL:YTLPOWR) and Bumi Assets Sdn Bhd to develop a 1,623-acre industrial park in Bukit Kerayong, Selangor.

According to a filing with Bursa Malaysia, SD Guthrie will invest up to RM101.12 million for a 30% stake in the joint-venture company, Bukit Kerayong Industrial Developments Sdn Bhd (BKID). Bumi Assets and YTL Power will each hold a 35% stake.

The investment entails subscription of shares of about RM3 million in BKID and short-term advances of up to RM98.12 million for land acquisition and related costs. 

BKID will have a paid-up capital of RM10 million, with YTL Power's subsidiary and Bumi Assets each injecting RM3.5 million for 35% interests.

SD Guthrie will nominate its chief financial officer for BKID, while YTL Power will nominate its chief executive officer and Bumi Assets its chief operating officer.

As part of the deal, SD Guthrie will sell its oil palm plantation land to the joint venture for RM933.57 million, generating an estimated gain of RM586.3 million.

The group plans to use 80% of the proceeds to reduce bank borrowings, with the remainder allocated for real property gains tax and its joint-venture investment.

The estate currently has 594.02 hectares planted with oil palm and was acquired by SD Guthrie for RM64.4 million in 2008 and net book value of RM60 million as of December 2025.

The disposal price represents a premium of about 5% or RM44.6 million to the RM889 million valuation assigned by independent valuer CBRE WTW Valuation & Advisory Sdn Bhd as at April 16, 2026.

Post-disposal, the company’s net gearing would fall to 0.2 times from 0.24 times and net assets per share would rise to RM2.73 from RM2.64, with it gaining interest savings after tax of RM18.25 million.

As at end-June, SD Guthrie had borrowings of RM7.56 billion against cash, deposits and bank balances of RM531 million.

“The proposed land disposal is expected to be completed by the first quarter of 2027,” SD Guthrie noted.

As at market close on Thursday, SD Guthrie shares closed two sen or 0.35% higher at RM5.77, valuing the company at RM39.9 billion.

Meanwhile, YTL Power closed three sen or 0.57% higher at RM5.30, valuing the company at RM46.6 billion.