JAG Capital Bhd (formerly KUB Malaysia Bhd) is selling its entire 30% stake in Sarawak-based oil palm company Sinong Sepadu Sdn Bhd for RM44.3 million, citing strategic differences with its joint venture partner.
In a Bursa Malaysia filing, the group said its indirect subsidiary KUB Agro Holdings Sdn Bhd has signed a share purchase agreement with Sinong Enterprise Sdn Bhd, which holds the remaining 70% stake.
Sinong Sepadu operates two oil palm estates in the Oya-Dalat Land District in Mukah, Sarawak, covering about 4,614.5 hectares.
The deal values the company at about RM147.67 million, or roughly RM32,000 per hectare, and reflects a premium of 23.1% over the assessed value of JAG Capital’s stake based on an independent valuation.
The group expects to record a pro-forma gain of about RM17.42 million from the disposal, which will strengthen its net assets and earnings position.
JAG Capital said it decided to exit the investment due to its non-controlling stake and differing strategic priorities with its partner.
Proceeds from the sale will be used for working capital and may also be placed in short-term investments while the group explores new opportunities.
The transaction is expected to be completed by the third quarter of 2026, subject to approvals and conditions.
JAG Capital, which has interests in LPG, cables, building materials and ICT, closed unchanged at 98.5 sen on Wednesday.
