- Home
- Syed...
Syed Mokhtar's firm buys S P Setia's Tebrau land for RM564 mil cash
KUALA LUMPUR (June 11): S P Setia Bhd (KL:SPSETIA), which previously failed to sell its 959.72-acre Tebrau land to Scientex Bhd due to Bumiputera requirement issues, has finally sold the plot to a company linked to tycoon Tan Sri Syed Mokhtar Albukhary for RM564 million cash.
This sale follows two failed attempts to sell the land to Scientex Bhd (KL:SCIENTX). The first attempt was in 2021 for RM518.1 million, which fell through in March 2023 due to the inability to obtain a waiver for the Bumiputera equity condition imposed by the Economic Planning Unit (EPU).
Four months later, both parties revisited the deal with an increased price of RM547.65 million, but it was aborted in January this year due to the non-fulfilment of the conditions precedent relating to the approval of the EPU.
In a statement on Tuesday, S P Setia said the disposal of the land was conducted through its subsidiary Pelangi Sdn Bhd and was completed earlier in the day with Senibong Island Sdn Bhd (SISB).
"By unlocking the value of this asset, the deal enhances the company's financial standing, contributing to an expected profit after tax of RM332 million,” said S P Setia.
A quick check on the Companies Commission of Malaysia showed that SISB is linked to Syed Mokhtar.
SISB is owned by two shareholders: Sigma Senibina Sdn Bhd with a 49% stake and WM Senibong Sdn Bhd with a 51% stake.
Sigma Senibina is wholly owned by Kelana Ventures Sdn Bhd, a company owned by Syed Mokhtar.
Meanwhile, Sigma Senibina holds 1.74 million shares (37.82% stake) in WM Senibong.
“This successful transaction complements our de-gearing efforts, which are happening according to plan and shall contribute to our future growth,” said S P Setia president and chief executive officer Datuk Choong Kai Wai in the statement.
“By efficiently managing our capital structure, channelling resources into fast-developing projects, rationalising our cost structure, and directly boosting our bottom line, Setia is better positioned for expansion and long-term sustainability,” it added.
In tandem with this, Choong said the group continues to direct its efforts into other revenue streams via land bank management, making its mark in industrial development and continuing with regional expansion in Vietnam and Australia to broaden its income base, in addition to its strong execution of township projects in line with market demand.
S P Setia’s share price settled unchanged at RM1.48, for a market capitalisation of RM7.03 billion. Year-to-date, the stock has rallied 85%.
Read also: Scientex nixes second attempt to buy Johor land from S P Setia at higher price of RM548 mil Scientex inks new deal to buy Johor land from S P Setia, now for RM548 mil S P Setia sells Johor land to Scientex for RM518.1m S P Setia to continue cutting debt, preparing for potential REIT
- https://www.msn.com/en-my/money/topstories/syed-mokhtar-s-firm-buys-s-p-setia-s-tebrau-land-for-rm564-mil-cash/ar-BB1o0Tih
Related
ASB ceases to be substantial shareholder of Telekom Malaysia
KUALA LUMPUR (July 26): Amanah Saham Bumiputera (ASB), a unit trust fund of Permodalan Nasional Bhd, has ceased to be a substantial shareholder in Telekom Malaysia Bhd (KL:TM) following a disposal on Wednesday. According to a bourse filing on Friday, ASB sold 6.82 million shares in Malaysia’s state-owned fixed-line operator. However, the transaction price was not disclosed. The block of shares would have earned ASB over RM47.2 million based on...
MoneyRehda Malaysia applauds Federal Court’s ruling involving the delivery period of properties in Prema Bonanza Sdn Bhd vs Sri Damansara Sdn Bhd case
KUALA LUMPUR (July 26): The Real Estate and Housing Developers’ Association (Rehda) Malaysia applauded the Federal Court’s ruling on the cases involving Prema Bonanza Sdn Bhd and Sri Damansara Sdn Bhd on Friday, which removed the uncertainties in the determination of the delivery period of properties. A press statement issued by Rehda Malaysia president Datuk Ho Hon Sang said the ruling is particularly a reprieve for the industry, as it is now...
MoneyUEM Sunrise’s divestment in South Africa falls through again
KUALA LUMPUR (July 24): Property developer UEM Sunrise Bhd's (KL:UEMS) disposal of its 80.4% stake in South Africa’s Roc-Union Proprietary Ltd has fallen through again as the buyer Azishe Properties Proprietary Ltd failed to fulfil its payment obligations within the stipulated time frame, according to its filing with Bursa Malaysia. This is the second attempt by UEM Sunrise to sell its stake in Roc-Union. To recap, UEM Sunrise South Africa had...
MoneyIGB REIT, IGB Commercial REIT, KIP REIT, UOA REIT, Nestlé, ViTrox, Luxchem, Texchem, SCIB, JAKS, TDM, Ahmad Zaki, Iqzan
KUALA LUMPUR (July 25): Here is a brief recap of some business news and corporate announcements that made the headlines on Thursday: IGB Real Estate Investment Trust’s (KL:IGBREIT) net property income (NPI) for the second quarter ended June 30, 2024 rose 6.5% to RM109.48 million from RM102.79 million a year ago, due to higher rental income. Revenue increased 5.95% to RM149.97 million from RM141.54 million. Its distributable income rose to...
MoneyNew Shopee Transaction And Commission Fees From Aug 1
Online retailers should be aware of the changes that are set to take effect on 1 August. The post New Shopee Transaction And Commission Fees From Aug 1 appeared first on iMoney Malaysia.
MoneyTaliworks sees more jobs as data centre boom drives up need for water infrastructure investments
This article first appeared in The Edge Malaysia Weekly on July 15, 2024 - July 21, 2024 TALIWORKS Corp Bhd [KL:TALIWRK] sees the country’s data centre boom driving up investments in water infrastructure over the near to medium term, and is primed to take on more jobs. “We foresee the boom in the data centre market will drive increased demand for water resources, mainly for cooling purposes. From early indications, a hyperscale data centre with...
MoneyBuzz over likely applicants for digital insurance licences
This article first appeared in The Edge Malaysia Weekly on July 15, 2024 - July 21, 2024 FINTECH (financial technology) and insurtech (insurance technology) firms, as well as a few established digital insurers in the region, are seen as the likely applicants for a digital insurance or takaful operator licence in Malaysia, experts say. Applicants may include PolicyStreet (an insurtech backed by Khazanah Nasional Bhd that sells insurance online to...
MoneyTough operating environment to persist for glove sector, says Kenanga
KUALA LUMPUR (July 23): Kenanga Research has maintained its 'underweight' rating for the Malaysian glove sector, and expects the tough operating environment to persist over the immediate term. In a sector update on Tuesday, the research house said this is due to the still-weak earnings undertone in the first quarter of calendar year 2024, plagued by overcapacity, predatory pricing by certain overseas players, weak demand, and high cost of input....
Money