How much of the RM1.3b plan will be funded by equity?

Question

Accepted Answer

63 Per Cent of the RM1.3 Billion Tyre Manufacturing Plan Will Be Funded by Equity

Berjaya Property Bhd's wholly-owned subsidiary, Alam Baiduri Sdn Bhd (ABSB), and Trusmax Investment Co Ltd are establishing a RM1.3 billion automotive tyre manufacturing business in Malaysia. Of the total project cost, 63 per cent, amounting to RM813.35 million, will be financed through shareholders' equity. The remaining RM491.45 million, representing 37 per cent of the funding, will be sourced through borrowings.
Equity Funding Breakdown

The total equity contribution for the joint venture is RM813.35 million. This equity funding will be provided by both parties involved in the venture. Trusmax Investment Co Ltd, a subsidiary of Wanli Tire Co Ltd, will hold a 70 per cent stake in the new company, contributing RM569.34 million in cash as part of the equity.
ABSB's Equity Contribution

Alam Baiduri Sdn Bhd (ABSB), Berjaya Property's subsidiary, will hold the remaining 30 per cent of the joint venture company. ABSB's equity commitment includes RM125.70 million in cash and a 27.47-hectare freehold land parcel valued at RM118.31 million. Including estimated costs for construction and land conversion works, ABSB's total capital commitment is RM813.35 million over two years.
Land Valuation and Works

The 27.47-hectare parcel of land, part of a larger oil palm plantation acquired in 2017, has been valued at RM118.31 million for the project. This valuation incorporates an estimated RM60 million for construction, land conversion, and subdivision works that ABSB will undertake. ABSB's overall commitment to the venture, comprising cash and land-related works, will be financed through Berjaya Property's internal funds and borrowings.

Reading history

Hide →

This history is cleared when the page is closed.

How much of the RM1.3b plan will be funded by equity?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends