PETALING JAYA: Mudajaya Group Bhd’s shareholders have been advised to vote in favour of the proposed disposal of a 45% stake in Real Jade Ltd to major shareholder Minyi Holdings Ltd (MHL) for HK$234mil (RM118.45mil) to settle debts owed to MHL.

In a circular dated Oct 21, independent adviser SCS Global Advisory (M) Sdn Bhd said the proposed disposal was “fair and reasonable and not detrimental to the interests of non-interested shareholders.” It recommended that shareholders vote in favour of the resolution at the company’s EGM on Nov 5.

SCS Global said the proposed consideration was above the net asset-based valuation of HK$150.49mil by independent business valuer Asia Equity Research Sdn Bhd but within the HK$224.68mil to HK$248.45mil range derived using the free cash flow to firm method.

The proposed disposal involves Mudajaya’s unit Xelmont Ltd selling the stake to MHL.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.