The sale of its interest in the joint venture with Frasers Property is expected to result in a one-off gain of about RM83.2 million
[SINGAPORE] Fraser and Neave Holdings Berhad (FNHB) announced on Thursday (Sep 25) that it will dispose of its 50 per cent stake in joint venture Vacaron, which owns a 5.1-hectare leasehold land parcel in Petaling Jaya in Malaysia.
FNHB’s stake in Vacaron will be sold to property developer Tan & Tan Developments for about RM180 million (S$55 million), equal to half of Vacaron’s adjusted pro forma net asset value (NAV). The final amount will depend on the adjusted pro forma NAV at the fulfilment date.
Vacaron is a property development joint venture between FNHB and Frasers Property Holdings (Malaysia). F&N Group owns about 55.5 per cent in FNHB and about 27.7 per cent of Vacaron.
Based on FNHB’s 2024 financials, the disposal is expected to result in a one-off gain of about RM83.2 million after accounting for the carrying value of the investment, recent capital injections and estimated transaction expenses and tax. Net assets per share will rise from RM9.75 to RM9.98.
The Malaysian subsidiary of Fraser and Neave (F&N) Group said in a Bursa Malaysia bourse filing that property development no longer forms part of its core business.
Proceeds from the disposal will go towards financing its other businesses, including its integrated agriculture and dairy farm operations in Gemas, Negeri Sembilan. The company also intends to focus on its manufacturing, distribution, marketing and sale of its beverage, as well as dairy and food products.
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The proposed transaction is set to be completed in the third quarter of 2027, said FNHB. It is not expected to have a material effect on the net tangible assets or earnings per share of the parent F&N Group for the financial year ending Sep 30, 2025.
Separately on Wednesday, F&N also appointed Rahul Colaco as its new chief executive officer. He takes up the role on Oct 1.
Shares of F&N closed flat at S$1.49 on the Singapore bourse on Thursday.
