Leader Steel's RM136.6m Kapar land sale to WG Malaysia VIII becomes unconditional
Leader Steel Holdings Bhd's RM136.56 million disposal of 33 acres of freehold industrial land in Kapar, Klang, to WG Malaysia VIII Sdn Bhd has become unconditional. All conditions precedent under the sale and purchase agreement were fulfilled on Oct 27, 2026.
PETALING JAYA (Oct 28): The sale and purchase agreement (SPA) for Leader Steel Holdings Bhd's proposed RM136.56 million disposal of 33 acres of freehold industrial land in Kapar, Klang, to WG Malaysia VIII Sdn Bhd has become unconditional.
In a Bursa Malaysia filing on Tuesday (Oct 27), the group said all conditions precedent under the SPA had been fulfilled, rendering the agreement unconditional that day. The announcement did not state that the disposal had been completed.
Its wholly-owned subsidiary FerroNet Asia Sdn Bhd signed the SPA with WG Malaysia VIII on March 19, 2026. According to Leader Steel's July 3 circular to shareholders, the vacant industrial land spans 13.3546 hectares (approximately 33 acres) and is held under H.S.(D) 166443, PT 85118, in Mukim Kapar, Klang district, Selangor. It fronts Jalan Akob and is situated approximately 21km from Klang city centre.
The purchaser had identified the site as part of a larger parcel for information technology infrastructure development, the circular said. The circular's ownership disclosures as at June 24, 2026, showed DayOne Data Centers Ltd holding a 100% indirect interest in WG Malaysia VIII through intermediate companies.
The consideration was agreed at RM95 per sq ft, taking into account Savills (Malaysia) Sdn Bhd's valuation of RM137 million as at March 6, 2026. The land's audited net book value stood at RM113.66 million as at Dec 31, 2025. Leader Steel said in the circular that the price reflected the land's potential for information technology infrastructure development, yielding a premium over similar land for typical industrial use.
Under the proposed proceeds allocation outlined in the circular, RM56.21 million was earmarked for repayment of borrowings, including an early repayment penalty, RM38.71 million for working capital and RM25 million for acquisitions of complementary businesses or assets to be identified. A further RM4.64 million was earmarked for a proposed special cash dividend, equivalent to approximately three sen per share based on the share base used in the circular. The circular described the dividend as one to be declared and paid, with the entitlement date to be determined later by the board. The remaining RM12 million was allocated for estimated disposal expenses, including real property gains tax.
According to the circular, the disposal was deemed a related-party transaction because Leader Steel, Maybulk Bhd and Eonmetall Group Bhd had certain directors and major shareholders in common. Subsidiaries of Maybulk and Eonmetall had separately agreed to sell adjoining parcels to the same purchaser.
