Berjaya Property to buy Citaglobal's 20% Manjaran stake for RM50m in shares
Berjaya Property Bhd has proposed acquiring Citaglobal Bhd's entire 20% stake in Manjaran Sdn Bhd for RM50 million via new shares. The deal would give Berjaya Property a 49% interest in the developer of the Perlis Maritime Corridor upon completion of a related subscription.
PETALING JAYA (Oct 27) — Berjaya Property Bhd has proposed buying Citaglobal Bhd's entire 20% stake in Manjaran Sdn Bhd for RM50 million, paving the way for a 49% interest in the Perlis Maritime Corridor developer. In Bursa Malaysia filings on Monday (Oct 26), the companies said they had entered into a conditional share sale agreement for the acquisition, to be settled entirely through new Berjaya Property shares.
The property group will issue 178.57 million shares at 28 sen each, giving Citaglobal approximately 3.39% of its enlarged share capital after this transaction and an earlier proposed subscription. The acquisition is conditional upon completion of Berjaya Property's RM58 million subscription for a 29% stake in Manjaran, announced on June 29, which remains pending. That subscription will be settled through the issuance of 206.79 million new Berjaya Property shares at 28 sen each and RM100,000 in cash.
Upon completion of both proposals, Berjaya Property would hold 49% of Manjaran, with Dedap Rimbun Sdn Bhd retaining 51%. The combined investment would total RM108 million. Manjaran is an investment holding company with an indirect interest in Mutiara Perlis Sdn Bhd, which is developing the Perlis Maritime Corridor comprising Perlis Inland Port, Perlis Sanglang Port and Perlis Power Hub.
According to Berjaya Property's filing, the inland port occupies a 500-acre site in Chuping Valley, approximately 4.47km from the Malaysia–Thailand border. Its facilities include container yards, rail sidings, warehousing and cold-chain infrastructure. The inland port's second and third phases remain at the planning stage, with implementation subject to market conditions and container throughput demand. The Sanglang port and power hub are also being planned, with commencement dates yet to be determined.
Berjaya Property, formerly known as Berjaya Land Bhd, said the acquisition would strengthen its presence in the port, logistics and energy sectors. Settling the consideration through new shares would preserve its cash for existing operations and its borrowing capacity for other funding requirements and potential investment opportunities. The issue price represents a 12.86% premium to its five-day volume-weighted average market price of 24.81 sen up to Oct 23.
Citaglobal said the RM50 million disposal consideration implies an equity value of RM250 million for Manjaran, a 25% premium to the valuation under Berjaya Property's earlier subscription. The engineering and construction group estimated a one-off disposal gain of RM13.39 million, based on its investment's carrying value of RM36.61 million as at June 30. The actual gain will depend on Berjaya Property's share price and the investment's carrying value upon completion, subject to its external auditors' review.
Citaglobal said the disposal would reduce its exposure to Manjaran's capital requirements and investment risks. It may continue participating in the corridor's development as an engineering, procurement, construction and commissioning contractor, without further equity capital contributions. It intends to retain the consideration shares but may sell some or all depending on market conditions. Any proceeds would be used for working capital and future investments. Manjaran would cease to be its associate upon completion. The acquisition requires Bursa Malaysia Securities' approval for the listing of the consideration shares but does not require Berjaya Property shareholders' approval. Subject to the outstanding conditions being fulfilled, completion is expected by the end of 2026.
