Ajiya sells Puchong factory to Esprit Care for RM58m

Ajiya Bhd is selling a freehold industrial property in Puchong, Selangor, to Esprit Care Sdn Bhd for RM58 million. The deal represents a 45 per cent premium over the RM40 million market valuation and is expected to complete in the first quarter of 2027.

PETALING JAYA – Ajiya Bhd is proposing to sell a freehold industrial property in Puchong, Selangor, for RM58 million cash to Esprit Care Sdn Bhd, a manufacturer and trader of healthcare products. The disposal is part of Ajiya's efforts to rationalise its asset portfolio and streamline operations, according to a Bursa Malaysia filing on Thursday (Oct 1).

The property comprises a single-storey factory with a two-storey office on approximately 13,536 sq m of freehold industrial land, with a gross built-up area of about 9,839.52 sq m. Held under Geran 54074, Lot 12, Pekan Puchong Perdana in the Petaling district, the 22-year-old building has no encumbrances. Its postal address is PT 32341, Taman Perindustrian Puchong Utama, Puchong.

The RM58 million consideration represents a 45 per cent premium to the RM40 million market value assessed by CBRE WTW Valuation & Advisory Sdn Bhd. Ajiya said the price was negotiated on a willing-buyer, willing-seller basis, taking the valuation into account. The group disclosed an estimated gross pro forma gain of RM25.45 million, comprising the difference between the selling price and the property’s audited net book value of RM37.03 million as at Dec 31, 2025, plus a RM4.48 million reversal of deferred tax liability.

Ajiya said the disposal would strengthen its liquidity and financial flexibility while supporting the consolidation of its resources and future business initiatives. Production capacity has already been fully integrated into its primary facility, and the proposed disposal is not expected to have any material adverse impact on daily operations or manufacturing capacity.

Proceeds will be used for working capital, ongoing business expansion, prospective business activities and potential dividend distributions. The allocation has yet to be determined, but the group intends to use the proceeds within 12 months of completion, barring unforeseen circumstances.

The agreement provides for a 10 per cent deposit totalling RM5.8 million, with the remaining RM52.2 million payable within three months of the agreement date. A one-month extension is provided, subject to interest of 8 per cent per annum on the unpaid balance, calculated daily. The disposal requires the relevant state authority’s approval and consent for the property transfer, but does not require shareholder approval. Completion is expected in the first quarter of 2027, barring unforeseen circumstances.

Ajiya said the proposed disposal is not expected to materially affect the group’s net assets or gearing, nor have a material impact on earnings or earnings per share for the financial year ending Dec 31, 2026.