KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Key Takeaway: Malaysian Resources Corp Bhd (KL:MRCB) will take full control of the RM21 billion Bukit Jalil Sentral project after acquiring the Employees Provident Fund’s (EPF) 80% stake for RM1.58 billion, with potential plans to explore data centre development on the site.
Transaction Details
MRCB’s wholly owned unit Rukun Juang Sdn Bhd is acquiring EPF subsidiary Tanjung Wibawa Sdn Bhd’s (TWSB)80% stake in Bukit Jalil Sentral Property Sdn Bhd (BJSP). The deal involves 1.13 billion Class A preference shares, giving MRCB full control of the project land.
Purchase price: RM1.58 billion cash
Net asset value: RM1.4 billion
EPF’s investment cost: RM1.14 billion
Shareholders advances: RM69.21 million, which Rukun Juang may also assume
The acquisition is a related-party transaction as EPF holds about 36% of MRCB. AmInvestment Bank Bhd has been appointed as the principal adviser.
Financial Impact
MRCB will finance the purchase through internal funds and/or borrowings, with the exact loan amount yet to be determined. If it borrows about RM1.32 billion, its debt-to-equity ratio could rise from 0.2x to 0.6x.
The deal is expected to add approximately 2.37 sen per share to MRCB’s profit.
Shares of MRCB closed 1.05% lower at 47 sen on Monday, valuing the company at RM2.1 billion. Year to date, the stock has fallen 10.48%.
Project Background
Bukit Jalil Sentral: A 76.14-acre mixed development project valued at RM21 billion.
BJSP controls three parcels of land:
97,720 sq m recreational park
37,320 sq m vacant land
173,800 sq m vacant land
The land was transferred to BJSP by the government in April 2018 as part of a payment arrangement for upgrading the National Sports Complex in Bukit Jalil.
A development plan was approved in November 2020, but revisions could not be agreed upon between MRCB and EPF, prompting the buyout.
Strategic Outlook
MRCB said the land could serve as an “enlarged hub” for MRANTI Park, located 1.9km away and capable of housing hyperscale data centres. The company will conduct feasibility and environmental studies before proceeding with any data centre development.
The acquisition aligns with MRCB’s strategy as a leading developer of large-scale transit-oriented projects. The company is also the master developer of KL Sentral, a 72-acre integrated hub in Kuala Lumpur.
Comments
Post a Comment