KUALA LUMPUR (Jan 5): Majuperak Holdings Bhd has decided to dispose of a 134.2-hectare leasehold land in Perak to a wholly-owned unit of the state’s agricultural development agency for RM9.53 million as a debt settlement.   

In a filing on Thursday (Jan 5), the group said that the land, located in the Mukim Sungai Tinggi District of Larut & Matang, is currently charged to Perak Agro Corporation Sdn Bhd as security to the loan owed by Majuperak.

Majuperak had in March last year raised the RM9.53 million via a promissory note from Perak Agro, a wholly-owned unit of Perbadanan Pembangunan Pertanian Negeri Perak (PPPNP).   

The loss-making developer raised the sum for payment of salaries and other operating expenditures. 

On Aug 24, 2022, Majuperak had requested for a 12-month extension to settle the debt, but was declined by Perak Agro, which instead requested that the promissory note be settled by way of transferring the land.  

Majuperak said the disposal is the most appropriate method to settle the debt as the group does not have any plans to develop the vacant land. The disposal also enables Majuperak to conserve cash. 

The group’s cash and cash equivalents stood at RM3.02 million as at end-September last year, versus RM4.47 million as at end-2021. 

The land transfer is deemed a related party transaction as Majuperak is 51%-owned by Perbadanan Kemajuan Negeri Perak, another state government agency that shares common directorship with PPPNP. 

The proposed settlement by way of disposal of the land came more than six months after shareholders rejected the group’s proposed settlement of the debt owing to Perak Agro via the issuance and subscription of 28.44 million new Majuperak shares at 33.5 sen a piece on June 13, 2022. 

Shares of Majuperak closed unchanged at 25 sen on Thursday, giving it a market capitalisation of RM71.1 million.