Berjaya Property Bhd has provided further details on its proposed RM58 million investment in Manjaran Sdn Bhd, saying the acquisition is underpinned by the long-term growth prospects of the Perlis Inland Port (PIP) and the wider Perlis Maritime Corridor (PMC) development.
In a supplementary filing the property developer said the subscription consideration for a 29% stake in Manjaran was determined on a willing-buyer, willing-seller basis after taking into account the financial viability of the project and an earnings valuation based on a price-to-earnings multiple of about 19 times.
The valuation was derived using Manjaran’s projected average annual profit after tax of RM16 million over a 20-year period.
Berjaya Property said Manjaran’s financial projections assume that revenue from the Perlis Inland Port will increase progressively as container throughput rises toward full operating capacity before stabilising with long-term annual growth of about 2%.
The company also expects the project to benefit from a 10-year income tax exemption under the Northern Corridor Economic Region (NCER) tax incentive scheme.
The projections further assume the inland port will continue operating without significant disruptions from funding constraints, regulatory changes, accounting policy revisions or adverse political and economic conditions.
Berjaya Property said it decided to fund the bulk of the subscription through the issuance of 206.79 million new shares at 28 sen each, rather than relying on additional bank borrowings.
The company said the move would preserve its borrowing capacity for future funding needs and potential investment opportunities while strengthening its balance sheet.
Upon completion, the share issuance is expected to increase the group’s share capital and net assets while lowering its gearing, although it will dilute the shareholdings of existing shareholders.
The company also disclosed that the Perlis Inland Port’s Phase 2 and Phase 3 remain in the planning stage and will be implemented progressively, subject to market conditions and future demand for container throughput.
Meanwhile, the proposed Perlis Sanglang Port (PSP) has yet to commence construction and remains in the planning phase.
Once completed, the port is expected to feature a four-kilometre maritime trestle jetty and house three major facilities comprising the Langkawi Supply Base for roll-on/roll-off vessels, the Langkasuka Supply Base supporting the oil and gas sector, and a Bulk Cargo Terminal for dry and liquid bulk cargo.
Berjaya Property said these facilities are expected to generate recurring income for Manjaran through docking fees, cargo handling charges, specialised logistics services and long-term warehouse rentals.
