MSM rises 2.86% on selling Perlis land to F&N

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KUALA LUMPUR (Oct 9): Shares in MSM Malaysia Holdings Bhd, a 51% subsidiary of FGV Holdings Bhd, rose 2.86% this morning after the group said it is selling a 4,453.92ha land in Chuping, Perlis, to Fraser & Neave Holdings Bhd (F&N) for RM156 million. MSM said it will use proceeds from the disposal to repay bank borrowings and for working capital.

At 9.15am, MSM rose 3 sen to RM1.08 for a market capitalisation of RM759.22 million.

The selling price is an 18% discount on the market value of the land.

MSM said it believes the disposal is in the best interest of the group, as the land generates negligible revenues but requires unsustainable financial commitments due to the high operating costs of maintaining the plantation activities.