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KUALA LUMPUR (March 12): The joint venture between Ann Joo Resources Bhd (KL:ANNJOO) and Transyear Sdn Bhd has secured a deal to sell a 60.1-acre industrial land in Gurun, Kedah, for RM117.81 million cash.
The industrial plot is valued at RM45 per square foot, according to Ann Joo’s bourse filing.
Ann Joo said its indirect subsidiary Gurun Heavy Industrial Park Sdn Bhd (GHIP), together with Transyear, has entered into a sale and purchase agreement with LB Advanced Material Asia Sdn Bhd for the disposal of the land, which is known as plot 7.
The land forms part of a 96.87-acre development land owned by GHIP and earmarked for industrial park development under a joint venture agreement signed between GHIP and Transyear in December 2025.
The buyer LB Advanced Material Asia is principally engaged in manufacturing inorganic compounds.
Ann Joo said in its bourse filing that it expects to receive RM65.4 million for its share of proceeds from the land sale. The money will be used for repayment of outstanding loans and working capital.
The steel manufacturer noted that the land sale is expected to enhance the group’s future cash flow and earnings visibility.
The transaction is expected to be completed within 15 months from the date of the sale and purchase agreement.
Ann Joo said the disposal is not expected to have any significant impact on the group's net assets, gearing or earnings per share for the financial year ending Dec 31, 2026.
Financially, Ann Joo had RM107.25 million in cash against RM1.1 billion in short-term and RM171.38 million in long-term borrowings as of Dec 31, 2025.
Ann Joo's net loss narrowed to RM255.77 million for the financial year ended Dec 31, 2025 (FY2025), from RM288.86 million in FY2024, despite a 15.6% drop in revenue to RM2.17 billion in FY2025, from RM2.52 billion previously, owing to lower selling prices and sales tonnage of various steel products.
Shares in Ann Joo gained two sen or 4.55% to close at 46 sen on Wednesday, giving it a market capitalisation of RM331 million. Over the past one year, the stock has fallen 28%.
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