KUALA LUMPUR (July 10) — Ajinomoto (Malaysia) Bhd's proposed RM20 per share privatisation has brought renewed attention to the company's strategic transformation over the past few years, particularly its shift from a valuable urban industrial property in Kuala Lumpur to a purpose-built manufacturing campus in Bandar Enstek, Negeri Sembilan.
The proposed takeover is not merely a corporate restructuring exercise but also raises questions over how investors should value a business whose key property asset has evolved from redevelopment land into a modern production facility.
RM408 Million Monetisation of Kuchai Lama Property
For decades, Ajinomoto Malaysia's manufacturing operations were based on its Jalan Kuchai Lama site in Kuala Lumpur, which served as both its factory and headquarters.
As Kuala Lumpur expanded and surrounding infrastructure improved, the industrial property gained significant redevelopment value. Recognising the opportunity, the company disposed of six contiguous leasehold land parcels in 2023 for RM408 million.
Following the sale, Ajinomoto rewarded shareholders with a special single-tier dividend of RM2.12 per share, returning part of the disposal proceeds while unlocking the hidden value of the mature industrial land.
The transaction marked the end of an era for the Kuchai Lama site and accelerated the company's transition to its new manufacturing base in Bandar Enstek.
Bandar Enstek Becomes the New Manufacturing Centre
Instead of replacing one industrial landbank with another, Ajinomoto invested in a modern manufacturing campus designed to improve long-term operational efficiency.
Located within the Bandar Enstek Halal Hub, the new facility occupies approximately 18.6 hectares of freehold land and integrates:
Manufacturing facilities
Warehousing
Logistics operations
Administrative offices
The campus incorporates automation, digitalisation and green-building technologies while supporting halal-certified food production.
Unlike the former Kuchai Lama property, whose value increasingly depended on redevelopment potential, the Bandar Enstek facility is focused on generating sustainable operating returns through efficient manufacturing.
Strong Financial Performance After Relocation
The first full financial year following the manufacturing transition indicates that the new production facility is contributing positively to business performance.
For the financial year ended March 31, 2026, Ajinomoto Malaysia reported:
Revenue increased to approximately RM710 million, compared with RM684 million previously.
Operating profit rose nearly 18% to around RM79 million.
Profit before tax improved to approximately RM86 million.
Net profit increased about 44% to RM71 million.
Basic earnings per share climbed from roughly 82 sen to about 118 sen.
The company attributed the stronger performance to higher domestic sales of AJI-NO-MOTO®, Tumix and Seri-Aji, improved industrial seasoning sales, lower raw material costs and better operational efficiency.
Healthy Balance Sheet Supports Growth
Ajinomoto Malaysia also demonstrated a strong financial position.
As of March 31, 2026, the company reported:
More than RM90 million in operating cash flow.
Around RM348 million in total cash and liquid investments.
No borrowings or debt securities.
Net assets per share increased to RM14.27.
Remaining capital commitments of only RM11.2 million for plant and equipment.
The results suggest that the company has largely completed its major investment phase and is beginning to generate stronger returns from its upgraded manufacturing infrastructure.
RM20 Privatisation Offer
On June 22, 2026, parent company Ajinomoto Co., Inc. proposed to privatise Ajinomoto Malaysia through a Selective Capital Reduction (SCR) exercise at RM20 per share.
The proposal values the company at approximately RM1.22 billion.
After deducting the company's substantial net cash position of approximately RM348 million, the implied enterprise value is about RM870 million.
The offer is currently subject to the required approvals from minority shareholders and independent advisers.
Property Strategy Reflects Long-Term Business Focus
Ajinomoto Malaysia's property strategy illustrates a clear shift in corporate priorities.
The company successfully monetised a mature urban industrial asset when redevelopment values peaked, then reinvested in a modern manufacturing facility designed to support future production, operational efficiency and long-term earnings growth.
Rather than relying on property appreciation, the company is now focused on creating value through manufacturing excellence and stronger operating performance.
What I Learn
Ajinomoto Malaysia demonstrates how companies can unlock shareholder value by recycling mature property assets into productive operating infrastructure. The disposal of its high-value Kuchai Lama industrial land generated significant cash, rewarded shareholders through a special dividend and funded a strategic relocation to a modern manufacturing campus.
The company's improved financial performance following the transition suggests that the investment is already delivering operational benefits. Strong earnings growth, healthy cash flow, a debt-free balance sheet and substantial cash reserves indicate that the new facility is enhancing long-term competitiveness.
The proposed RM20 per share privatisation therefore extends beyond a simple takeover offer. It represents a valuation of a transformed business whose primary asset is no longer redevelopment land, but a state-of-the-art manufacturing platform positioned for sustainable growth. Minority shareholders will likely assess whether the offer fully reflects the company's stronger operational outlook, financial strength and long-term earnings potential.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 10 Jul 26
Malaysia