The Mudajaya Real Jade stake disposal heads to a shareholder vote on Nov 5. Mudajaya Group Bhd (KL:MUDAJYA) is selling a 45% stake in Real Jade Ltd to major shareholder Minyi Holdings Ltd (MHL) for HK$234 million, or RM118.45 million. The price is set off against debt owed to MHL, and SCS Global Advisory says it is fair.
What Is the Mudajaya Real Jade Stake Disposal?
Mudajaya’s indirect unit Xelmont Ltd is selling the stake. The deal was announced in May.
Mudajaya keeps an indirect 55% stake in Real Jade, which is principally involved in cement manufacturing, sales and trading in China.
MHL holds a direct 11.76% stake in Mudajaya. That makes the transaction a related-party deal.
Is the RM118.45 Mil Real Jade Price Fair to Shareholders?
SCS Global Advisory says the disposal is fair and reasonable and not detrimental to non-interested shareholders. It recommends a vote in favour.
- Net asset basis: Asia Equity Research Sdn Bhd valued the 45% stake at HK$150.49 million.
- FCFF range: The free cash flow to firm valuation spans HK$224.68 million to HK$248.45 million.
- Deal price: HK$234 million is above the net asset value and inside the FCFF range.
SCS Global says the price sits closer to the upper end of the FCFF range. It credits the future earnings potential of Real Jade’s upgraded cement manufacturing plant, completed in September.
How Does the Debt Settlement Change Mudajaya’s Balance Sheet?
The HK$234 million consideration is set against HK$244.97 million owed to MHL as at April 30, 2026. The deal is expected to produce a disposal gain of HK$82.11 million.
- Net assets per share: RM1.06 to RM1.14 (expected).
- Gearing ratio: 0.76 times to 0.59 times (projected).
- Disposal gain: HK$82.11 million.
SCS Global says the deal minimises immediate cash outflow. It also preserves cash for existing projects and working capital, and mitigates repayment default risk on debt due in the near term.
Why Is Mudajaya’s Share Price at a Record Low of 28 Sen?
Mudajaya closed unchanged at a record low of 28 sen on Wednesday. That values the company at RM148.81 million, and the stock has fallen nearly 40% year to date.
Against projected net assets per share of RM1.14, the 28 sen close is a fraction of book value. Mudajaya is also raising RM25.96 mil via private placement to cut debt. For a structured way to track figures like these, see AI Stock Analysis for Malaysians.
When Is the Mudajaya Shareholder Vote on the Real Jade Deal?
The circular to shareholders is dated Oct 21. The extraordinary general meeting is on Nov 5.
Shareholders are advised to vote in favour of the resolution, according to SCS Global’s recommendation.
Key Takeaways
- Mudajaya is disposing of a 45% stake in Real Jade Ltd for HK$234 million (RM118.45 million) to settle debt owed to MHL.
- SCS Global Advisory calls the deal fair and reasonable, with the price above net asset value and in the upper part of the FCFF range.
- Net assets per share are projected to rise to RM1.14 from RM1.06, and gearing to fall to 0.59 times from 0.76 times.
- Shareholders vote at the EGM on Nov 5, and the stock closed at a record low of 28 sen.
This article is for information only and is not investment advice. Do your own research, read the full circular, and consult a licensed adviser before making any decision.
Frequently Asked Questions
How much is the Mudajaya Real Jade stake disposal worth?
Mudajaya is disposing of a 45% stake in Real Jade Ltd for HK$234 million, or RM118.45 million. The consideration is set off against debt owed to Minyi Holdings Ltd (MHL).
When is the Mudajaya EGM on the Real Jade disposal?
The extraordinary general meeting is on Nov 5. The circular to shareholders is dated Oct 21.
Why is MHL involved in the Mudajaya Real Jade deal?
MHL holds a direct 11.76% stake in Mudajaya, which makes the disposal a related-party transaction. MHL is also the creditor the proceeds will repay.
Will Mudajaya still own part of Real Jade after the disposal?
Yes. Mudajaya will retain an indirect 55% stake in Real Jade, which is involved in cement manufacturing, sales and trading in China.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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