YLI Holdings Berhad has provided additional details on its proposed RM28.5 million disposal of two industrial land parcels in Prai, Penang, following a request for further clarification from Bursa Malaysia.
The disposal involves two leasehold industrial properties owned by YLI’s wholly owned subsidiary, Yew Lean Foundry & Co Sdn Bhd, to Trilight Optics (Malaysia) Sdn Bhd.
The properties comprise Lot 2432 at Tingkat Perusahaan 6 and Lot 2462 at Lorong Perusahaan 10 within the Prai Industrial Estate, together with the 33kV electrical system and substation erected on the sites.
YLI said the first property, Lot 2432, was acquired on Feb 11, 1983, while Lot 2462 was purchased on Sept 10, 1999.
According to the company, the combined market value of the properties was independently assessed at RM27.5 million by Raine & Horne International Zaki + Partners Sdn Bhd using the comparison approach methodology. The agreed disposal consideration of RM28.5 million represents a premium to the appraised market value.
The properties have a combined net book value of RM15.9 million based on YLI’s audited financial statements as at March 31, 2025, implying a substantial gain over their carrying value.
YLI also disclosed that the leasehold tenure for Lot 2432 expires on Oct 3, 2042, while the lease for Lot 2462 expires on Apr 13, 2044.
In response to queries regarding the purchaser’s ownership structure, the company said the ultimate substantial shareholder of the purchaser’s parent company, Hui Lyu Ecological Technology Groups Ltd, is Li Xioming, who holds a 29.2% stake in the group through Hui Lyu Technology Trading Pte Ltd.
On the financial impact, YLI said the disposal is not expected to materially affect its gearing position. The group plans to use part of the proceeds to repay RM2.1 million in bank borrowings, representing approximately 1.47% of its total equity of RM142.4 million as at March 31, 2025.
The remaining proceeds will be utilised for business expansion, operational requirements and strategic initiatives, with full utilisation expected within the timeframe outlined by the company.
YLI previously said the disposal forms part of its strategy to unlock value from non-core assets and strengthen its financial position while supporting future growth plans. The transaction remains subject to the completion of the sale and purchase process.
