Shin Yang Group buys Kuching industrial property for RM34m in related-party deal
Shin Yang Group Bhd has agreed to acquire an 8.316ha leasehold industrial property in Kuching, Sarawak, for RM34 million from Forescom Plywood Sdn Bhd. The related-party transaction will support the expansion of the group's door-to-door logistics operations.
PETALING JAYA (Sept 4): Shin Yang Group Bhd has agreed to acquire an 8.316ha (20.55-acre) leasehold industrial property in Kuching, Sarawak, for RM34 million from Forescom Plywood Sdn Bhd in a related-party transaction.
The group entered into a sale and purchase agreement (SPA) on Friday for the property at Jalan Semangat in the Pending Industrial Estate, according to a Bursa Malaysia filing on Friday (Sept 4). The land, held under Lot 2233, Section 66, Kuching Town Land District, comes with an office building, workers’ quarters, a workshop and an outbuilding.
The 60-year leasehold expires on March 30, 2037. The property is categorised as Mixed Zone Land/Town Land and has no encumbrances. The RM34 million purchase consideration was arrived at on a willing-buyer willing-seller basis. Shin Yang said it was supported by a valuation report dated Aug 14, prepared by CH Williams Talhar Wong & Yeo Sdn Bhd, which valued the property at RM34 million using the comparison approach.
Shin Yang said the acquisition is intended to support the expansion of its door-to-door logistics operations, including the construction of a warehouse and container depot. The group also said acquiring the property instead of continuing to lease it from Forescom Plywood would reduce its rental dependence and related-party transactions. It expects the property’s location within Kuching’s industrial hub and Kuching Port area to enhance its operational capacity and logistics efficiency.
The acquisition will be funded through a combination of bank financing and internally generated funds. Shin Yang said it is not expected to have a significant effect on its net assets per share or earnings for the financial year ending Dec 31, 2026, or a material impact on gearing.
The acquisition is deemed a related-party transaction because Shin Yang Holding Sdn Bhd (SYHSB), a direct major shareholder of Shin Yang Group, is the ultimate holding company of Forescom Plywood. Forescom Plywood is wholly owned by Nirama Sdn Bhd, which in turn is wholly owned by SYHSB. Several Shin Yang directors and indirect major shareholders also have interests in Forescom Plywood or SYHSB. The interested directors and major shareholders have abstained and will continue to abstain from deliberations and voting on the acquisition at the relevant board meetings.
The highest percentage ratio applicable to the acquisition under Bursa Malaysia’s Main Market Listing Requirements is 2.14%, based on the purchase consideration against Shin Yang’s audited consolidated net assets of RM1.59 billion as at Dec 31, 2025. The acquisition does not require shareholders’ approval but is subject to written transfer consent from the Director of Lands and Surveys under a condition attached to the land title. Under the SPA, Forescom Plywood is required to obtain the transfer consent within four months from the date of the agreement. Completion is subject to full settlement of the purchase consideration and fulfilment of the title condition relating to the transfer consent.
