MPI to see net gain of RM99.2m from Penang land sale

• The proposed disposal is expected to be completed in the second half of 2025. However, the disposal is conditional upon the approvals of the Penang Development Corp and the Penang Land and Mines Office.

KUALA LUMPUR (Feb 12): Malaysian Pacific Industries Bhd (KL:MPI) is disposing of two parcels of land in Bayan Lepas, Penang for a total cash consideration of RM140 million.

The leasehold land measures approximately 40,487 square metres. Upon completion of the proposed disposal, MPI expects to realise an estimated net gain on disposal of approximately RM99.2 million, the group’s bourse filing showed.

"The estimated net gain attributable to owners of the company represents an increase in the consolidated earnings per share (EPS) and consolidated net assets per share of approximately 49.75 sen," it added.

Note that in the financial year ended June 30, 2024 (FY2024), MPI’s EPS stood at 82.65 sen, while its NA was RM10.51 per share.

On Wednesday, MPI said its wholly-owned unit Dynacraft Industries Sdn Bhd (DCI) had entered into a conditional sale and purchase agreement to dispose of the land to Open DC PE2 Asset Sdn Bhd.

“As DCI has ceased its manufacturing of lead frames operations, the properties are not needed for any business operation and the proposed disposal will enable DCI to realise its investment in the properties,” said MPI.

PE2 is principally engaged in the buying, selling, renting and operating of self-owned or leased real estate. PE2 is wholly-owned by Open DC Sdn Bhd. The directors of PE2 are Cheong Chei Yean and Wong Weng Yew.

The proposed disposal is expected to be completed in the second half of 2025. However, the disposal is conditional upon the approvals of the Penang Development Corp and the Penang Land and Mines Office.

Shares in MPI closed down 58 sen or 2.62% to RM21.54 on Wednesday, bringing the group a market capitalisation of RM4.52 billion. Over the past one year, the stock has declined 18%.

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