Mudajaya shareholders urged to approve Real Jade stake sale for HK$234 million
The proposed related-party transaction would offset debt owed to Minyi Holdings Ltd, while Mudajaya would retain an indirect 55% interest in Real Jade.
Independent adviser SCS Global Advisory (M) Sdn Bhd has recommended that Mudajaya Group Bhd shareholders approve the proposed sale of a 45% interest in Real Jade Ltd to Minyi Holdings Ltd (MHL) for HK$234 million (RM118.45 million). The payment would be offset against borrowings owed to MHL.
In its Oct 21 circular, SCS Global assessed the transaction as fair and reasonable, saying it would not harm non-interested shareholders’ interests. It recommended support for the resolution at Mudajaya’s extraordinary general meeting on Nov 5.
Mudajaya’s indirect subsidiary Xelmont Ltd would sell the stake, leaving the group with an indirect 55% interest in Real Jade. The business manufactures, sells and trades cement in China. MHL’s direct 11.76% shareholding in Mudajaya makes the proposed sale a related-party transaction.
SCS Global said the price exceeded the net asset-based assessment and was within the valuation range derived using the free cash flow to firm approach. Asia Equity Research Sdn Bhd, the independent business valuer, put the stake’s net asset-based value at HK$150.49 million.
Debt owed to MHL stood at HK$244.97 million as at April 30, 2026. According to SCS Global, the transaction is expected to limit immediate cash outflows, preserve funds for existing projects and working capital, and reduce the risk of default on debt approaching repayment.
The proposed sale is expected to yield a HK$82.11 million gain. Mudajaya’s net assets per share are expected to rise from RM1.06 to RM1.14, while its gearing ratio is projected to fall from 0.76 times to 0.59 times.
