Investment & Market Trends

GuocoLand (Malaysia) Bhd has disposed of a 20% stake in GLM REIT Management Sdn Bhd, the manager of Tower Real Estate Investment Trust, according to filings on Bursa Malaysia on Tuesday. Tower REIT said the stake was acquired by HL Management Co Sdn Bhd, a wholly owned subsidiary of Hong Leong Company (Malaysia) Bhd. Hong Leong Company is also the ultimate holding company of Hong Leong Bank Bhd. Following the transaction, GuocoLand retains an 80% equity interest in GLM REIT Management. The filing did not disclose the rationale for the partial divestment. Tower REIT added that the Securities Commission Malaysia has approved the change in shareholding, clearing the regulatory requirement for the transaction to proceed. GuocoLand is a subsidiary of Guoco Group Ltd, the overseas investment arm of the Hong Leong Group, which is ultimately controlled by the Kwek family. GLM REIT Management Sdn Bhd serves as the manager of Tower REIT, overseeing its operations and strategic direction. The divestment represents a change in the ownership structure of the REIT’s management company but does not affect the listed REIT itself. Market reaction was muted, with Tower REIT closing unchanged at 30 sen on Tuesday, valuing the company at RM147.3 million. GuocoLand also ended the session flat at RM1.09, giving it a market capitalisation of RM763.5 million.

Japan’s Ajinomoto Co Inc will take its Malaysia-listed unit private at RM20 per share, representing a 31.6% premium over its last traded price of RM15.20. In a Bursa Malaysia filing, Ajinomoto (Malaysia) Bhd (KL:AJI) said the privatisation exercise, valued at RM603.4 million, will be carried out via a selective capital repayment. As at March 31, Ajinomoto Malaysia held cash of RM74 million, equivalent to about RM1.23 per share. Based on a preliminary estimate, the Japanese parent is expected to inject more than RM500 million to fund the transaction. The company said the exercise will be funded through its excess funds, with the remaining portion to be financed by the parent company. However, no detailed breakdown was disclosed. The board of Ajinomoto Malaysia, excluding conflicted directors, will deliberate on the proposal and determine the next course of action. If completed, Ajinomoto Co does not intend to maintain the listing of Ajinomoto Malaysia, which is primarily involved in food seasonings, including monosodium glutamate (MSG). Ajinomoto Co currently holds a 50.38% stake, or 30.63 million shares, in the Malaysian unit. The privatisation will involve acquiring the remaining 30.17 million shares, or 49.62% interest, via a selective capital reduction and repayment exercise. Under the proposal, the group will pay RM603.4 million in total at RM20 per share to cancel the minority shareholding. As at June 22, Ajinomoto Malaysia had an issued share capital of RM65.1 million comprising 60.8 million shares. As at end-March, the group had RM74.24 million in cash and bank balances and about RM273.5 million in liquid investments. Retained earnings stood at around RM805 million, against total equity of RM867.6 million. It has no material borrowings aside from lease liabilities of about RM5.16 million. To facilitate the transaction, Ajinomoto Malaysia will first issue 571.1 million bonus shares, as the proposed repayment exceeds its existing share capital. However, these shares will not be credited to shareholders or listed. The subsequent capital reduction will see all minority-held shares, along with the bonus shares, cancelled. Ajinomoto Co said the offer provides shareholders an attractive exit opportunity given the company’s historically low trading liquidity, with average daily volume accounting for just about 0.13% of its free float. It added that Ajinomoto Malaysia has derived limited benefit from its listing status, as it has not raised funds from the capital market for over a decade while still incurring listing-related costs. The proposal requires approval from at least 75% of votes cast by independent shareholders, with dissenting votes not exceeding 10%, along with other regulatory approvals. Trading in the stock will resume at 9am on Tuesday.

Malaysia Airlines and Singapore Airlines will introduce new joint fare products for travel between Kuala Lumpur and Singapore as part of an expanded partnership. The new offerings build on their existing codeshare arrangement and aim to provide travellers with more fare options between the two capital cities, while enhancing connectivity across both carriers’ wider networks, according to a joint statement. Both airlines are also working towards introducing additional customer benefits in phases, including reciprocal lounge access, coordinated flight schedules and joint corporate travel arrangements. No further details on the fare products were disclosed. “This joint business partnership with Singapore Airlines marks a significant milestone in the expansion of our commercial collaboration,” said Bryan Foong Chee Yeong, head of airline business at Malaysian Aviation Group Bhd, the parent company of Malaysia Airlines. Singapore Airlines chief commercial officer Lee Lik Hsin said the new fare products would broaden travel options for passengers flying between Singapore and Kuala Lumpur. Malaysia Airlines and Singapore Airlines have been strengthening cooperation since signing a commercial framework agreement in October 2019. Both national carriers currently maintain codeshare agreements across routes in Malaysia, Singapore, Europe and South Africa. In February 2024, they also introduced reciprocal mileage accrual and redemption between Malaysia Airlines’ Enrich programme and Singapore Airlines’ KrisFlyer programme, allowing members to earn and redeem points on selected flights operated by either airline.

Berjaya Corporation Bhd has disposed of its entire 8.64% stake in Citaglobal Bhd to Detik Ria Sdn Bhd for RM42.56 million. In a Bursa Malaysia filing on Monday, Berjaya Corp said its wholly owned subsidiary, Berjaya Securities Sdn Bhd, sold 46.77 million Citaglobal shares to Detik Ria via a direct business transaction on June 19 at 91 sen per share. Detik Ria is controlled by Johor princess Tunku Tun Aminah Sultan Ibrahim, who is also Berjaya Corp’s non-executive chairman, a director of Berjaya Securities and chairman of Detik Ria. As a result, the disposal is considered a related-party transaction. The shares were originally acquired at 90 sen each through Citaglobal’s private placement exercise completed on June 8, with the carrying value in Berjaya Corp’s books also standing at 90 sen per share. Following the sale, Berjaya Securities has ceased to be a shareholder of Citaglobal. Berjaya Corp said the disposal price was determined based on Citaglobal’s prevailing market price at the time of the transaction. Proceeds from the sale will be used for working capital purposes, including administrative, marketing and operating expenses. The group added that the disposal is not expected to have a material impact on its net assets, earnings or gearing for the financial year ending June 30, 2026, nor will it affect its issued share capital or substantial shareholders’ holdings. Tunku Aminah abstained from all board discussions and voting related to the transaction. Berjaya Corp’s audit committee deemed the disposal fair, reasonable and conducted on normal commercial terms, adding that it is not detrimental to minority shareholders. Berjaya Corp shares closed 0.5 sen higher at 25.5 sen on Monday, giving the group a market capitalisation of RM1.55 billion. The stock has declined 3.8% over the past year. Citaglobal ended unchanged at 90.5 sen, valuing the company at RM489.9 million, with its shares up 12.4% over the same period.

Sunview Group Bhd has proposed to sell its entire 22.44% interest in Winstar Capital Bhd for RM30.1 million in cash to nine investors. In a Bursa Malaysia filing on Monday, Sunview said the disposal involves 70.03 million Winstar shares at 43 sen apiece under nine separate share sale agreements. The offer price is 23.9% below Winstar’s closing price of 56.5 sen on Monday. Among the buyers are four key management personnel and substantial shareholders of Winstar, namely vice-chairman Chua Nyok Chong, chief executive officer Chua Boon Hong, chief operating officer Lee Yong Zhi and chief marketing officer Khoo Nee Cheng. The other purchasers comprise Datuk Low Chin Koon, non-executive chairman of Tex Cycle Technology (M) Bhd and independent non-executive director of Mestron Holdings Bhd; Por Teong Eng, managing director of Mestron; Chu Kerd Yee, executive director of ES Sunlogy Bhd; as well as Ng Cheng Keng, Phuah Hue Shun and K Seng Seng Corporation Bhd. Sunview noted that the disposal price represents a 65.4% premium to its original investment cost of 26 sen per share and a 16.2% premium to the stake’s net book value of 37 sen per share as at Sept 30, 2025. The company expects to recognise a disposal gain of approximately RM6.8 million upon completion. Proceeds from the transaction will mainly be channelled towards working capital and debt reduction. About RM18.1 million will be allocated for engineering, procurement, construction and commissioning (EPCC) projects, while RM11.8 million will be used to repay bank borrowings. Sunview invested RM18 million in Winstar Aluminium Manufacturing Sdn Bhd in 2023 and said the proposed sale allows it to unlock the value of its investment, improve cash flow, lower gearing and retain borrowing capacity for future undertakings. The group added that disposing of the shares through the open market could have exerted significant downward pressure on Winstar’s share price due to the stock’s relatively low trading liquidity. The 70.03 million shares involved are equivalent to 21.3 times Winstar’s average monthly trading volume over the past six months and 6.4 times its average monthly trading volume over the past year. The proposed disposal is subject to shareholders’ approval and is targeted for completion by the first quarter of 2027. Based on Sunview’s audited financial statements as at Sept 30, 2025, the transaction is expected to raise its net asset per share to 19 sen from 17 sen and reduce its gearing ratio to 1.58 times from 1.82 times on a pro forma basis. Sunview shares closed 0.5 sen lower at 37 sen on Monday, valuing the company at RM223.3 million. The stock has declined 5.1% over the past year. Winstar shares finished unchanged at 56.5 sen, giving it a market capitalisation of RM176.4 million, with the stock up 4.6% over the same period.

Hextar Retail Bhd is acquiring the assets of a Zok Noodle House outlet in Bandar Sunway for RM1.25 million as part of its expansion into the food and beverage (F&B) sector. The acquisition will be undertaken through Craving Hub Sdn Bhd, a 51%-owned indirect subsidiary of Hextar Retail, and covers the outlet’s inventory, equipment, licences, tenancy rights, brand goodwill, and customer database at Sunway Square. In a Bursa Malaysia filing, Hextar Retail said the purchase aligns with its strategy to diversify and strengthen its presence in the F&B business. The transaction is deemed a related-party transaction due to overlapping shareholdings and directorships, although the company said it is not expected to have a material impact on its financial position. Craving Hub is 51%-owned by Hextar F&B Sdn Bhd, a wholly-owned subsidiary of Hextar Retail, while the remaining stakes are held by Zok Noodle House Sdn Bhd and Maxliaw Ventures Sdn Bhd. Zok TRX shareholder Wong Yew Loong also serves as a director of Craving Hub, while Zok TRX majority shareholder Datuk Ong Choo Meng is a substantial shareholder of Hextar Retail through Hextar Portfolio Sdn Bhd. Hextar Retail managing director Vo Nghia Huu is considered a connected person as he is Ong’s brother-in-law. The company said the RM1.25 million purchase price was determined based on the carrying value of the assets. Payment will be made within 60 days from the effective date of June 1, unless otherwise agreed by both parties. For the first quarter ended March 31, 2025 (1QFY2026), Hextar Retail recorded a net loss of RM1.32 million, widening from a net loss of RM550,000 a year earlier, despite revenue rising 96.6% to RM30.36 million. As at the end of March, the group had total assets amounting to RM201.5 million. Shares of Hextar Retail closed unchanged at 43 sen on Monday, giving the company a market capitalisation of RM215.3 million. Year-to-date, the stock has declined by 8.5%.

Indian companies have invested more than US$3 billion (RM12.18 billion) in Malaysia, creating over 30,000 direct jobs and strengthening economic ties between the two countries, according to the Consortium of Indian Industries in Malaysia (CIIM). CIIM chairman Datuk Umang Sharma said the investments have made a significant contribution to Malaysia’s economic growth and highlighted the increasing presence of Indian businesses in the country. He also credited outgoing Indian High Commissioner to Malaysia BN Reddy for supporting the Indian business community and helping deepen bilateral trade and investment relations during his tenure. Speaking at a farewell dinner hosted by CIIM in honour of Reddy and his wife Lalita Devi, Sharma described the envoy as a trusted adviser and strong advocate for closer Malaysia-India economic cooperation. Reddy, who previously served as deputy high commissioner from 2008 to 2011, played a role in advancing the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA) and helped elevate bilateral ties to a Comprehensive Strategic Partnership. The event was attended by more than 150 guests, including government officials, diplomats, business leaders, media representatives and CIIM members.

Jardine Matheson Holdings Ltd plans to repurchase US$500 million worth of its own shares by the end of next year, as part of efforts to enhance shareholder returns and support its broader business transformation. The Hong Kong-based conglomerate also aims to increase its annual dividend by at least 5% yearly through 2030 and deliver at least 9% annual growth in total shareholder returns, according to a company statement. The move marks the company’s latest step in reshaping its nearly 194-year-old business empire, shifting from a traditional long-term owner-operator model toward a more active investment approach. Led by chairman Ben Keswick and chief executive officer Lincoln Pan, Jardine has been reviewing parts of its portfolio, including potential divestments of long-held businesses such as restaurant chains, property assets, and automotive dealerships, while expanding into new sectors like healthcare and medical-related industries. The strategic overhaul comes as several major Hong Kong conglomerates reposition themselves amid changing geopolitical conditions and rapid technological advancements. Jardine said it is targeting at least US$200 million in profit after tax and minority interests from new acquisitions, focusing on market-leading Asia-Pacific companies with strong technology adoption capabilities, including artificial intelligence (AI). To fund future investments, the group plans to recycle at least US$4 billion in capital from portfolio companies by 2030, excluding contributions from its property unit and Indonesian conglomerate interests. The company has also been actively reviewing asset monetisation opportunities. Over the past year, Jardine has put more than US$1.8 billion worth of Hong Kong property assets up for sale and is exploring additional divestments, including selected commercial properties and automotive dealership operations in Hong Kong, Macau, Malaysia, and Singapore. The planned buyback signals Jardine’s intention to strengthen investor confidence while repositioning the group for long-term growth.

TMK Chemical Bhd has proposed to acquire Chemical Company of Malaysia Bhd (CCM) from Batu Kawan Bhd in a RM920 million cash-and-shares deal, a move that would significantly expand its business footprint and make Batu Kawan a major shareholder in the listed chemicals company. In a filing with Bursa Malaysia, TMK said it had submitted a non-binding letter of intent to acquire 100% of CCM, excluding associate company Orica-CCM Energy Systems Sdn Bhd and two land parcels linked to that business. These assets will be transferred out at cost before or after the completion of the deal, subject to approvals. The proposed RM920 million purchase price will be settled through a mix of cash and newly issued TMK shares. TMK said the cash component will be funded through proceeds from its December 2024 listing, bank borrowings, and internally generated funds, while the share portion will be issued at RM1.9098 per share, based on the company’s five-day volume-weighted average price as of May 31. Upon completion, Batu Kawan is expected to own at least a 20% stake in TMK, positioning it as the company’s second-largest shareholder. The transaction is considered a related-party deal, as TMK’s largest shareholder, Datuk Lee Soon Hian, is the younger brother of Batu Kawan chairman Tan Sri Lee Oi Hian. As such, the proposal will require approval from non-interested shareholders and reviews by independent advisers. In a separate statement, Batu Kawan said its board — excluding interested directors — had agreed in principle to the offer, subject to due diligence, independent advice, and the signing of a definitive sale and purchase agreement. The proposed disposal comes around five years after Batu Kawan privatised CCM. In 2020, the group acquired a 56.32% controlling stake in CCM from Permodalan Nasional Bhd (PNB) for RM292.8 million, before completing the privatisation in 2021. CCM manufactures a range of industrial and specialty chemicals, including chlor-alkali products, sulphur derivatives, and polymer coatings, serving industries such as water treatment, healthcare, manufacturing, agriculture, and rubber. For TMK, the acquisition would mark a major expansion beyond its core chemical storage and logistics business into manufacturing, allowing it to move further up the value chain through CCM’s established production capabilities. The proposed deal also comes as Batu Kawan pursues other strategic investments, having recently acquired a 47.7% stake in MKH Bhd for RM549.8 million, triggering a mandatory general offer for the remaining shares. While the CCM acquisition remains subject to approvals and due diligence, the move signals a potential portfolio rebalancing by Batu Kawan, allowing it to monetise a mature asset while retaining exposure through a substantial stake in TMK. Both parties have agreed to a two-month exclusivity period to negotiate the deal, with due diligence expected to be completed within one month of offer acceptance.

Berjaya Assets Bhd (BAssets) has sold shares in Berjaya Corp Bhd (BCorp) and Berjaya Property Bhd to major shareholder Tan Sri Vincent Tan Chee Yioun for a total cash consideration of approximately RM20 million. In a filing with Bursa Malaysia, BAssets said its wholly owned subsidiaries, Berjaya Bright Sdn Bhd and Berjaya Times Square Sdn Bhd, carried out the disposals through direct business transactions. The sale involved 59.79 million BCorp shares, representing a 1.01% stake, valued at RM14.05 million or 23.5 sen per share. Additionally, BAssets disposed of 23.8 million Berjaya Property shares, equivalent to a 0.49% stake, for RM5.95 million or 25 sen per share. Following the transactions, BAssets’ stake in BCorp declined to 1.39% from 2.39%, while its holding in Berjaya Property fell to 0.27% from 0.75%. The company said the disposal prices were based on prevailing market rates at the time of the transactions, with all shares sold free of encumbrances. According to BAssets, the move allows the group to partially realise its investments in both companies, with proceeds to be used as working capital for ongoing development projects. The company added that the disposals are not expected to materially impact its net assets, earnings, or gearing for the financial year ending June 30, 2026, and will not affect its issued share capital or substantial shareholders’ holdings.