PETALING JAYA (July 10) — Ge-Shen Corp Bhd has provided further clarification on its proposed disposal of five freehold industrial land parcels in Mukim Tebrau, Johor Bahru, explaining why it agreed to sell the properties at a 7.26% discount to market value and outlining an estimated RM12.63 million gain from the transaction.

The additional disclosures were made in response to Bursa Malaysia's requirements following the company's earlier announcements regarding the proposed disposal.

Five Freehold Land Parcels in Tebrau

The proposed transaction involves the disposal of five freehold land parcels located along Jalan Riang 21 and Jalan Riang 23 in Mukim Tebrau, Johor Bahru.

The properties are situated close to Ge-Shen Corp's existing office, making them part of the company's industrial land holdings in Johor.

According to the company, the disposal is classified as a non-related party transaction under Bursa Malaysia's Main Market Listing Requirements.

Why Ge-Shen Accepted a 7.26% Discount

Although the agreed selling price is 7.26% below the independent market valuation, Ge-Shen said the board believes the transaction delivers stronger commercial value than holding out for a higher price.

The company explained that the sale price was negotiated on a willing buyer-willing seller basis following arm's length discussions between both parties.

In deciding to accept the discount, the board considered several key factors, including:

• Securing a committed purchaser.
• Achieving greater certainty that the transaction will be completed within the agreed timeframe.
• Avoiding prolonged marketing efforts and the uncertainty of finding another buyer.
• Reducing additional holding and maintenance costs while waiting for a future sale.
• Benefiting from favourable payment terms and overall commercial conditions negotiated under the agreement.

Management believes these commercial advantages outweigh the relatively small discount to market valuation.

Estimated Disposal Gain of RM12.63 Million

Ge-Shen expects the proposed transaction to generate an estimated pro forma gain of RM12.63 million.

The gain is calculated after deducting:

• Audited net book value: RM20.43 million (as at Dec 31, 2025).
• Estimated transaction-related expenses: Approximately RM2.44 million, including payments to relevant authorities and legal fees.

The disposal therefore enables the company to unlock capital from its property assets while realising a meaningful accounting gain.

Shareholders Can Inspect Valuation Report

The company also clarified that:

• No guarantee was provided to GSP in relation to the proposed disposal.
• A copy of the independent valuation report dated Nov 22, 2023 will be made available for shareholders' inspection at the company's registered office during normal business hours for three months from the announcement date.

What This Means

Ge-Shen's explanation highlights an important aspect of commercial property transactions—achieving the highest valuation is not always the primary objective. In many cases, certainty of completion, attractive payment terms and reduced carrying costs can create greater overall value than waiting for a buyer willing to pay full market value.

The expected RM12.63 million gain also demonstrates the value embedded within the company's industrial land portfolio in Johor, where demand for strategically located industrial properties continues to be supported by manufacturing expansion and investment activity.

For investors, the transaction illustrates Ge-Shen's active approach to capital management by monetising non-core assets, strengthening liquidity and potentially redeploying capital into operations or future growth opportunities. It also reflects the continued attractiveness of industrial land in Johor Bahru, particularly as the state benefits from increasing industrial investment and the long-term development of the Johor-Singapore Special Economic Zone (JS-SEZ).