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GuocoLand has announced plans to take its Malaysian subsidiary private through a buyout valuing the company at MYR 770.5 million, or about USD 196.1 million. The offer, made by unit GLL Malaysia, is priced at MYR 1.10 per share and carries a 17.65 percent premium to the previous closing price. Shareholders will receive a capital repayment of MYR 269.4 million. Following completion, GuocoLand (Malaysia) will be delisted and become a wholly owned subsidiary.
Singapore-based property developer GuocoLand has moved to take its Malaysian-listed subsidiary private through a share buyout that values the company at about MYR 770.5 million, or around USD 196.1 million. The company disclosed that the offer will be made by GLL Malaysia (GLLM), a wholly owned unit, with GuocoLand acting as the ultimate offeror. Advertisement
Under the proposal, GLLM will acquire the remaining stake of nearly 35 percent that it does not already own in GuocoLand (Malaysia) Berhad. The offer price has been fixed at MYR 1.10 per share, which reflects a premium of 17.65 percent over the stock's last traded price before the announcement. The move signals the parent company's intent to consolidate ownership and streamline operations in Malaysia.
GuocoLand (Malaysia) clarified that all shareholders, other than GLLM, will receive a capital repayment totalling MYR 269.4 million as part of the transaction. Once the process is completed, the Malaysian entity will become a wholly owned unit of GLLM and will be delisted from the Malaysian stock exchange. The company stated that the privatisation would be funded through existing surplus cash, with equity fundraising to be considered if required.
The Malaysian arm is part of the wider Guoco Group, which is listed in Hong Kong and ultimately owned by the Hong Leong Group. The Hong Leong Group is controlled by Malaysian tycoon Quek Leng Chan and has interests across banking, property, hospitality, and financial services. GuocoLand itself has an established presence in Singapore, China, and Malaysia, with a focus on integrated developments and premium commercial and residential projects.
According to LSEG data, GuocoLand (Malaysia) currently has a market capitalisation of around MYR 654.9 million, which is below the valuation implied by the offer. Market observers note that similar privatisation moves by regional developers have often been driven by subdued stock performance and the desire for greater flexibility in capital deployment away from public market scrutiny.
Source Reuters
5th Jun, 2025
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