MUI Properties declares eight sen special dividend on Negeri Sembilan land sale

• MUI Properties announced plans to pay out dividends from the sale just last week, after it varied the utilisation of proceeds “to reward its shareholders by returning capital to its valued shareholders for their continuous support while continuing to invest in MUI Properties Group’s future”.

KUALA LUMPUR (Aug 22): MUI Properties Bhd (KL:MUIPROP) has declared a special dividend of eight sen per share, amounting to RM59.27 million, following the disposal of its Negeri Sembilan land to Gamuda Bhd (KL:GAMUDA) by a subsidiary.

Disposal of the Bandar Springhill industrial park land, amounting to RM424.43 million, was conducted by MUI Properties’ 60%-owned unit West Synergy Sdn Bhd.

MUI Properties’ shares settled up 1.5 sen or 3.95% to 39.5 sen on Friday, giving it a market capitalisation of RM298.03 million. The dividend translates to a yield of 20.25%, based on the counter’s last close.

MUI Properties announced plans to pay out dividends from the sale just last week, after it varied the utilisation of proceeds “to reward its shareholders by returning capital to its valued shareholders for their continuous support while continuing to invest in MUI Properties Group’s future”.

The dividend’s ex-date is Sept 10, with payment due on Sept 25, MUI Properties’ filing showed.

From the sale, West Synergy paid RM105.66 million in dividends to its shareholders, which amounted to RM63.4 million to MUI Properties, based on its 60% stake.

The remaining 40% shareholder of West Synergy is Double Alliance Sdn Bhd, which is linked to Chin Teck Plantations Bhd (KL:CHINTEK).

MUI Properties is 72.26%-controlled by Malayan United Industries Bhd (KL:MUIIND).

Of the remainder of the proceeds, parts of it has been earmarked for MUI Properties’ working capital (RM78.61 million), future asset acquisitions (RM120 million), costs related to the property (RM33.69 million) and disposal expenses (RM86.47 million).

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