PETALING JAYA (July 4) — Maybulk Bhd is seeking shareholders' approval for the proposed disposal of two freehold industrial land parcels in Kapar, Klang, for RM278.05 million, a move aimed at strengthening its financial position, rewarding shareholders and supporting future investments.
The proposed sale will be carried out through its 60%-owned subsidiary, MBC Logistic Hub Sdn Bhd, which has entered into an agreement to dispose of the industrial land to WG Malaysia VIII Sdn Bhd for cash consideration.
The land comprises two adjoining freehold parcels in Mukim Kapar, Klang, Selangor, with a combined area of approximately 23.49 hectares. Located along Jalan Bukit Kapar Kuari, the site is situated within an established industrial corridor that has experienced significant industrial development over the past two decades.
Disposal Based on Independent Market Valuation
According to the shareholder circular, the agreed purchase price of RM278.05 million was negotiated on a willing buyer-willing seller basis, equivalent to RM110 per square foot.
The valuation closely reflects an independent assessment of RM278 million, which adopted the comparison method based on the land's highest and best use for data centre and information technology infrastructure developments.
Although MBC Logistic Hub acquired the land in 2024 with plans to develop a logistics hub comprising 14 warehouses, office facilities and supporting infrastructure, construction has yet to begin.
Proceeds to Reduce Debt and Fund Future Opportunities
Maybulk intends to utilise the proceeds from the disposal primarily to repay borrowings associated with the land acquisition, significantly improving the group's financial position.
Part of the proceeds will also be allocated towards real property gains tax, transaction expenses and the proposed payment of a special dividend amounting to RM30.25 million for shareholders.
In addition, approximately RM31.26 million has been earmarked for future investments or acquisitions within the industrial property segment, supporting the group's long-term business expansion strategy.
Stronger Financial Position Expected
Based on pro forma financial projections, the proposed disposal is expected to generate a net gain of approximately RM31.26 million attributable to Maybulk's shareholders.
The transaction is also projected to reduce the group's gearing from 0.30 times to almost zero following the repayment of outstanding borrowings, while improving its net assets per share before the proposed special dividend distribution.
Shareholders to Vote on Proposal
As the transaction qualifies as a related-party transaction under Bursa Malaysia's Main Market Listing Requirements due to common directors and major shareholders among the involved companies, approval from non-interested shareholders is required.
An Extraordinary General Meeting (EGM) has been scheduled for 20 July 2026, where eligible shareholders will vote on the proposal.
Independent adviser BDO Capital Consultants Sdn Bhd has concluded that the proposed disposal is fair, reasonable and not detrimental to the interests of non-interested shareholders.
Industry Insight
The proposed transaction reflects the growing value of strategically located industrial land, particularly sites suitable for data centres and digital infrastructure. It also demonstrates how companies can unlock substantial value from undeveloped assets, improve financial flexibility and redeploy capital into future growth opportunities while maintaining prudent balance sheet management.
Key Takeaways
This article taught me that companies regularly review their land assets to maximise shareholder value rather than simply proceeding with the original development plan. I learned that if market conditions create a better opportunity, such as strong demand for industrial land suitable for data centres, selling the asset may generate higher returns than developing it. The article also helped me understand how proceeds from land disposals can be used strategically to reduce debt, strengthen financial health, reward shareholders through special dividends and fund future investments. Most importantly, I learned that major related-party transactions require independent evaluation and shareholder approval to ensure fairness and protect the interests of minority shareholders.
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 5 Jul 26
Malaysia