KUALA LUMPUR: Sapura Industrial Bhd has proposed to dispose of two adjoining industrial land parcels in Bandar Baru Bangi, Selangor to Zeito Plastic Components Sdn Bhd for RM42.33 million.
The two 99-year leasehold industrial plots, measuring 40,964 square metres, have a combined market value of RM40.6 million based on an independent valuation conducted by Raine & Horne International Zaki + Partners Sdn Bhd as at April 30.
According to a bourse filing, Sapura Industrial entered into a sale and purchase agreement (SPA) with the company on July 1 following a letter of offer between the parties on June 8.
Sapura Industrial said the RM42.33 million was negotiated on a willing-buyer willing-seller basis, taking into account the independent valuation, the properties’ aggregate net book value of RM9.1 million as at Jan 31 this year and their original acquisition cost of RM12.1 million in 2004.
The company expects to record an estimated net gain of RM29.14 million from the transaction after accounting for expenses and real property gains tax.
The proceeds will primarily be channelled towards expanding Sapura Industrial’s manufacturing, machining and assembly lines for automotive products including stabiliser bars, coil springs and brake discs.
Of the total proceeds, RM23.12 million has been earmarked for new high-precision machining and specialised assembly equipment, while RM12 million will be allocated to acquiring land or properties for new manufacturing facilities.
Another RM3.11 million will be used for working capital, with the balance set aside for transaction-related expenses.
Sapura Industrial said the disposal would allow the group to monetise assets that have been held for more than 20 years and redirect the capital towards higher-return operational investments.
“The board believes that the proposed disposal is timely, allowing the group to unlock the value of its non-core assets at the prevailing value and convert them into liquid funds for more productive operational use,” it said.
The company currently operates three manufacturing plants in Bangi and intends to buy land closer to its customers to improve production efficiency and reduce lead times.
Based on pro forma calculations, the disposal is expected to increase Sapura Industrial’s net assets per share to RM2.05 from RM1.65, while reducing its gearing ratio to 0.32 times from 0.40 times.
Earnings per share would rise to 49.4 sen from 10.11 sen, largely due to the one-off disposal gain.
The proposed disposal represents 35.19 per cent of Sapura Industrial’s latest audited net assets, making shareholder approval at an extraordinary general meeting a prerequisite before the transaction can proceed.
The transaction is expected to be completed in the first half of 2027.
The sourced: New Straits Times (3 July 2026)