SD Guthrie Shares Up In Early Trade After Land Disposal, JV Deal
KUALA LUMPUR, Oct 30 (Bernama) -- SD Guthrie Bhd’s shares rose in early trade after the company disposed of 657.09 hectares in Bukit Kerayong, Selangor, to Bukit Kerayong Industrial Developments (BKID) for RM933.57 million.
The group also partnered with Bumi Assets Sdn Bhd and YTL Power International Bhd to develop the site into an industrial park.
At 10.40 am, the counter rose three sen to RM5.80, with 351,700 shares traded.
In a joint statement yesterday, the companies said they will develop the land into a light-to-medium industrial park, complemented by commercial components and supporting infrastructure.
“The joint venture (JV) will be undertaken through BKID, with SD Guthrie holding a 30 per cent equity interest through its wholly owned subsidiary, SD Guthrie Land Ventures Sdn Bhd,” it said.
MBSB Investment Bank Bhd said in a research note today that it is positive about the deal, describing the partnership as mutually beneficial and as one that will strengthen SD Guthrie’s industrial business.
“The valuation is fair given SD Guthrie has a 30 per cent stake. This allows it to participate in the industrial land development and a recurring income base,” MBSB said.
The investment bank reiterated a “Buy” call with an unchanged target price of RM7.65 per share.
-- BERNAMA