PETALING JAYA, Malaysian Resources Corp Bhd (MRCB) will take full control of Bukit Jalil Sentral Property Sdn Bhd (BJSP) after agreeing to acquire the Employees Provident Fund’s (EPF) 80% stake in the joint venture for RM1.58 billion. The deal, which ends a stalled partnership, will allow MRCB to reshape and relaunch the project.
In a filing with Bursa Malaysia, MRCB said its wholly-owned unit Rukun Juang Sdn Bhd (RJSB) signed a share sale agreement on Sept 8 with EPF’s subsidiary Tanjung Wibawa Sdn Bhd to acquire eight million ordinary shares and 1.13 billion redeemable preference shares in BJSP. As of Aug 15, RJSB already held a 20% stake, meaning BJSP will become a wholly-owned subsidiary once the deal is completed.
Land and Valuation
BJSP, incorporated in 2017, owns three parcels of commercial leasehold land in Bukit Jalil covering 308,840 sq m. The land, with a 99-year tenure expiring in December 2116, has a combined net book value of RM1.49 billion but was valued at RM2.06 billion in July by IVPS Property Consultant Sdn Bhd.
MRCB said the RM1.58 billion purchase price was agreed on a willing-buyer willing-seller basis, close to KPMG Corporate Advisory Sdn Bhd’s adjusted net asset valuation of RM1.57 billion.
The transaction also includes shareholder advances of RM69.2 million previously provided by EPF’s unit to BJSP, which MRCB may have to assume if not repaid.
Funding and Financial Impact
The acquisition will be financed through a mix of borrowings and internal funds. Based on estimates, MRCB’s net borrowings will rise to RM3.58 billion, increasing its gearing ratio from 0.27 to 0.61 times.
On a pro forma basis, earnings per share for FY2024 are expected to increase from 1.43 sen to 2.37 sen, while net assets per share will edge up from RM1.03 to RM1.06.
Project Background and Future Plans
The Bukit Jalil project was initially planned as a large mixed-use development with office towers, hotels, retail, serviced apartments and residential units. However, the venture stalled due to pandemic disruptions and rising costs.
“As no progress has been made, both parties had considered alternatives and revisions to the original plan but could not reach a conclusion,” MRCB said.
With full control, MRCB plans to reassess the project, possibly revising the property mix to better match market demand. One option under study is incorporating data centres, given the land’s connectivity and its proximity to MRANTI Park.
“The growing demand for data centres has already attracted operator interest in nearby sites. These parcels could become an extension of MRANTI’s technology hub,” MRCB noted, adding that feasibility and environmental studies will be conducted before finalising any plans.
Regulatory Approvals
Because EPF is both the vendor and a substantial shareholder in MRCB with a 36.2% stake, the deal is classified as a related-party transaction. Kenanga Investment Bank Bhd has been appointed as the independent adviser to evaluate the fairness of the acquisition.
The deal requires shareholder approval at an EGM, along with regulatory and contractual clearances, and is expected to be completed by the second quarter of 2026.
