SD Guthrie shareholders approve RM418.51m Kulai land sale to Sime Darby Property
SD Guthrie Bhd's non-interested shareholders have approved the proposed RM418.51 million cash sale of about 556.96 acres of freehold land in Kulai, Johor, to a wholly-owned subsidiary of Sime Darby Property Bhd. The disposal is expected to generate a net gain of approximately RM373.36 million and is
PETALING JAYA (Oct 16): SD Guthrie Bhd's non-interested shareholders have approved its proposed sale of approximately 556.96 acres of freehold land in Kulai, Johor, to a wholly-owned subsidiary of Sime Darby Property Bhd for approximately RM418.51 million cash.
The plantation group said in a Bursa Malaysia filing on Thursday (Oct 15) that the ordinary resolution was passed at its extraordinary general meeting, with 99.9989% of the shares voted supporting the disposal. According to its Sept 29 shareholder circular, the proposed sale is expected to generate a net gain of approximately RM373.36 million after estimated expenses and real property gains tax.
The circular projected completion in the second quarter of 2027, barring unforeseen circumstances and subject to all required approvals being obtained. The buyer, Sime Darby Property (Kulai) Sdn Bhd, is principally involved in property development. The conditional sale and purchase agreement was signed on Aug 11.
Located in Mukim Senai, the land forms part of Kulai Estate's Kelan Division. It is currently cultivated with mature oil palms and categorised as agricultural land, but is zoned for residential use. The transaction covers approximately 434.99 acres forming part of Lot 81287, held under GRN 643613, and the entire 121.97-acre Lot 81288, held under GRN 643614.
The consideration was calculated at RM17.25 psf over approximately 556.96 acres, including up to 16.56 acres earmarked for surrender for the proposed Jalan Pintasan Sedenak, Bandar Putra public infrastructure project. Excluding the full earmarked area, the land to be transferred would measure approximately 540.40 acres. The agreement provides for adjustments to the consideration in specified circumstances involving the final titled area.
SD Guthrie plans to use approximately RM374.09 million of the proceeds to partially repay revolving credit facilities, RM41.51 million for real property gains tax and RM2.90 million for transaction expenses. For illustrative purposes, the group estimated that the borrowing repayment could generate annual interest savings after tax of approximately RM9.51 million, based on an effective average interest rate of 3.35%. Actual savings may vary depending on applicable interest rates.
SD Guthrie said the disposal would unlock the land's development value and improve its financial position. The land contributed approximately RM670,000 in net profit for the financial year ended Dec 31, 2025.
The disposal is classified as a related-party transaction under Bursa's listing requirements. The circular identified Amanahraya Trustees Bhd–Amanah Saham Bumiputera as a major shareholder of both SD Guthrie and Sime Darby Property. Interested parties were required to abstain from voting on the resolution. The circular listed approvals for the subdivision and transfer of the land, together with the issuance of a separate title for the affected portion of Lot 81287, among the transaction's conditions.
