KUALA LUMPUR (Feb 4): GuocoLand (Malaysia) Bhd has received a proposal from its controlling shareholder, GLL (Malaysia) Pte Ltd (GLLM), to take the company private through a selective capital reduction and capital repayment exercise priced at RM1.10 per share.
According to a filing with Bursa Malaysia on Tuesday, the proposal would see entitled minority shareholders—collectively holding 244.95 million shares or 34.97% of GuocoLand Malaysia’s issued share capital—receive total cash repayments of RM269.45 million based on the offer price.
Tan Sri Quek Leng Chan, who directly owns a 2.78% stake equivalent to 19.51 million shares, would receive RM21.46 million if the exercise proceeds.
GLLM, a wholly owned subsidiary of Singapore-listed GuocoLand Ltd, said the privatisation would be funded primarily through GuocoLand Malaysia’s existing cash reserves, with any shortfall to be covered via shareholder advances or equity injections from GLLM or its parent company.
As at end-December 2025, GuocoLand Malaysia reported cash and cash equivalents of RM197.2 million against total borrowings of RM584.8 million, while its net tangible assets stood at RM2.08 per share. Based on indicative calculations, the controlling shareholder would need to inject approximately RM72.25 million to fully acquire the remaining shares and delist the company.
Upon completion of the selective capital reduction, the 244.95 million shares held by minority shareholders would be cancelled, reducing GuocoLand Malaysia’s total issued shares to 455.51 million. All remaining shares would be held by GLLM, resulting in GuocoLand Malaysia becoming an indirect wholly owned subsidiary of GuocoLand Ltd. Currently, GLLM owns 65.03% of the company.
The offer price of RM1.10 represents a premium of 17.65% to the stock’s last traded price of 93.5 sen as at Jan 30, as well as a 47.73% premium to its six-month volume-weighted average price of 74.46 sen.
GLLM stated that it does not intend to maintain GuocoLand Malaysia’s listing status and will apply to Bursa Securities for delisting once the exercise is completed.
The proposal rationale cited limited trading liquidity, the opportunity for minority shareholders to exit at an attractive premium, and minimal strategic benefit from remaining listed, given that GuocoLand Malaysia has not raised equity capital in more than a decade.
The board of GuocoLand Malaysia has until March 2 to deliberate and decide on the proposal. However, non-independent non-executive directors Cheng Hsing Yao and Quek Kon Sean—both deemed parties acting in concert—will abstain from all discussions and voting related to the privatisation.
The exercise is subject to approvals from the Securities Commission Malaysia, disinterested shareholders at an extraordinary general meeting, and confirmation by the High Court. At least 75% in value of disinterested shareholders must approve the proposal, with opposition capped at no more than 10%.
Maybank Investment Bank Bhd has been appointed as the principal adviser for the exercise.
GuocoLand Malaysia shares, which were suspended from trading on Tuesday pending the announcement, have surged nearly 60% year-to-date. The stock last traded at 93.5 sen—its highest level since 2018—giving the group a market capitalisation of RM654.9 million. Based on AskEdge data, the shares are valued at 30.9 times trailing earnings and 0.5 times price-to-book.
The potential privatisation highlights continued strategic repositioning among property developers with assets spanning commercial property in KL, premium office developments, and mixed-use projects. For investors and occupiers in office space in Bukit Jalil, as well as stakeholders active in industrial land in Selangor, factory developments in Puchong, and industrial property in the Subang area, the move underscores a broader trend of consolidation and long-term asset optimisation within the Klang Valley property market.
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