Magni-Tech acquires freehold beachfront land in Tanjong Bungah, Penang for RM133.33m

PETALING JAYA (May 6): Magni-Tech Industries Bhd has announced that its wholly-owned subsidiary, Magni Land Sdn Bhd (MLSB), entered into a Sale and Purchase Agreement (SPA) yesterday (May 5) with Neoh Choo Ee & Company Sdn Bhd for the acquisition of a freehold parcel of vacant land in Bandar Tanjong Bungah, Daerah Timur Laut, Pulau Pinang for a total cash consideration of RM133.33 million, to be funded entirely from the group's internally generated funds.

The property

According to its Bursa announcement, the land — held under Geran (First Grade) No 46883, Lot 43, Bandar Tanjong Bungah — carries a title-endorsed area of 19,374 sq m, with a resurveyed land area of 19,080 sq m as indicated in the tender documents. 

The title also endorses a Borang K Acquisition part of approximately 4,101 sq ft. The land is held freehold in perpetuity, carries no category of land use, no restriction-in-interest and no encumbrances. It is currently vacant, with the proposed use stated as investment and potential development opportunity.

The audited net book value of the land in the vendor's books was RM1.01 million as at Dec 31, 2025, having been originally acquired by Neoh Choo Ee & Company in 1973. 

The purchase consideration was determined on a willing-buyer willing-seller basis, benchmarked against comparable properties in the vicinity, on an "as is where is" basis with vacant possession.

The vendor

Neoh Choo Ee & Company Sdn Bhd is a Penang-incorporated investment holding and plantation company with a paid-up capital of RM20.004 million comprising 20,004 ordinary shares. 

The company is principally involved in share investment, letting of premises, and the production and sale of rubber and oil palm fresh fruit bunches. 

Its shareholding is held across multiple members of the Neoh family and related entities, with Eng Guan Chan Sdn Bhd as the single largest shareholder at 6,346 shares (31.72%), followed by Dr Neoh Soon Leong at 2,947 shares (14.73%) and Neoh Soon Heng at 2,653 shares (13.26%).

MLSB — the acquiring vehicle

MLSB was incorporated in Malaysia with a nominal paid-up share capital of RM2 comprising two ordinary shares, with its registered office at Menara BHL Bank, George Town, Penang. Its directors are Tan Sri Tan Kok Ping and Tan Poay Seng. 

MLSB is principally involved in property development and carries no assumed liabilities arising from the transaction.

Rationale and financial structure

The board identified the property as prime freehold beachfront land with sweeping sea views, located approximately 15 minutes from the city centre and surrounded by established hotels, resorts and international schools. 

The acquisition is intended to establish a land bank for Magni-Tech and facilitate diversification into property development.

The RM133.33 million purchase consideration will be financed entirely from internally generated funds, with the group's audited net cash and cash equivalents standing at RM414.20 million as at April 30, 2025. 

The group carried no gearing prior to the transaction and is not expected to incur any gearing as a result.

Under the SPA, a 10% deposit of RM13.33 million is structured as follows: a 2% earnest deposit of RM2.67 million was paid prior to execution, while the 8% balance deposit of RM10.67 million is payable simultaneously upon signing, subject to deduction of the Real Property Gains Tax retention sum. 

The balance purchase price of RM120 million is due within three months of the SPA date. An automatic one-month extension is available, subject to late interest of 6% per annum calculated on a daily basis on any outstanding balance.

In the event of vendor default, the purchaser may seek specific performance or terminate the SPA and claim the deposit back together with an equivalent sum as agreed liquidated damages. Should the purchaser default, the deposit is absolutely forfeited to the vendor as agreed liquidated damages.

Regulatory and financial effects

The highest applicable percentage ratio under Paragraph 10.02(g) of Bursa Malaysia's Main Market Listing Requirements is 15.11%, computed against the group's audited consolidated net assets for the financial year ended 30 April 2025. 

The transaction does not require shareholder approval. No directors or major shareholders of Magni-Tech have any direct or indirect interest in the transaction. 

The transaction is not expected to have any material effect on the group's consolidated earnings per share, net assets per share or gearing for the financial year ending April 30, 2027. Completion is targeted for the second half of 2026.

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