KUALA LUMPUR (Jan 1): Andrew Khoo Boo Yeow, the son to whom Tan Sri Khoo Kay Peng passed the baton six years ago, has been in the thick of action to unlock the MUI group’s asset value over the past two years.
MUI Properties Bhd executive chairman Boo Yeow’s latest deal saw the sale of a sizeable parcel of land near Port Dickson to Gamuda Bhd for the latter’s data centre venture.
The 389.7-acre tract, which will fetch RM424 million in cash, is owned by West Synergy Sdn Bhd — a 60:40 joint venture between MUI Properties and Chin Teck Plantations Bhd. MUI Properties is the property arm of Kay Peng’s business empire that used to own MUI Bank Bhd in the 1980s, among others.
A back-of-envelope calculation shows that MUI Properties’ wholly-owned unit Peristal Enterprise Sdn Bhd will receive roughly RM254 million from the land sale via its 60% stake in West Synergy.
The sum will boost MUI Properties’ net cash position to RM334 million, or 45 sen per share. MUI Properties’ share price ended the year at 37 sen, valuing the company at RM274 million. The stock has gained nearly 95% in 2024.
MUI Properties, however, does not intend to declare any dividend with the sale proceeds, according to its filing with Bursa Malaysia. It said the amount will be utilised for working capital and land purchase.
MUI group’s divestment trail since 2022
Kay Peng’s flagship Malayan United Industries Bhd, or MUI, sold its UK hospitality assets, including the Belsfield Hotel for RM82.5 million in August 2022 after it disposed of The Regency Hotel for RM36.22 million in December 2021.
Boo Yeow, also CEO and chairman of MUI, has continued the divestment trail with Pan Malaysia Holdings Bhd (PM Holdings) Bhd, which owned equity interest in the stockbroking and asset management business as well as a holiday resort in Port Dickson.
In 2023, PM Holdings, one of the listed entities in the MUI group, looked to dispose of its equity interest in the stockbroking and asset management business to NewParadigm Capital Ventures Sdn Bhd for RM90 million.
The stockbroking and asset management business was parked under Pan Malaysia Capital Bhd (PM Capital), in which PM Holdings owned a 34.84% stake.
The divestment hit a legal snag initially. Other shareholders of PM Capital attempted to block the sale but failed to do so. The sale was completed in November that year.
Four months later, in March 2024, Kay Peng’s MUI sold its 65.9% stake in PM Holdings to the Lim Brothers of the Exsim group for RM36.7 million or six sen per share. The key asset of PM Holdings is Corus Paradise Resort in Port Dickson.
The Lim brothers later renamed the listed company Exsim Hospitality.
The renowned Corus Hotel Hyde Park in London and Corus Hotel KLCC are still owned by MUI. As at end-June 2024, Corus Hotel Hyde Park was listed with a carry value of RM932.54 million and Corus Hotel KLCC with RM287.69 million.
Currently, the Khoo family holds a 43.26% stake in MUI, which controls 72.7% equity interest in MUI Properties and a 44.71% stake in Pan Malaysia Corp Bhd, or PM Corp, which owns the A&W franchise.
Besides, MUI also operates the Metrojaya department store.
Boo Yeow has ventured into the food and beverage business via PM Corp, which sold off its chocolate product manufacturing operations for RM24.9 million and a parcel of land in Damansara for RM41 million. The company then utilised the sale proceeds to buy the remaining 49% stake in the A&W franchise. The purchase was satisfied by RM41.6 million, cash, plus the issuance of 111 million new shares.
Shares in MUI closed at seven sen on Tuesday, giving the group a market capitalisation of RM225.8 million. The stock has increased 16.7% in 2024. Meanwhile, Pan Malaysia Corp ended the year at 14 sen, down 28% in 2024. Its market capitalisation stood at RM123.6 million.
MUI was profitable in the third financial quarter ended Sept 30, 2024, while the other two were loss-making.
