PETALING JAYA: Sinmah Capital Bhd has proposed to sell its poultry business, SM Broilers Sdn Bhd, for a cash consideration of RM2.9mil.

       Sinmah said the proposed disposal was in line with the group’s objective of streamlining its businesses to focus on property development as its growth prospect as well as to unlock the value and monetise SM Broilers.

       Sinmah yesterday entered into a conditional share sale agreement with F.C.H. Holdings Sdn Bhd for the proposed disposal of 12 million shares in SM Broilers.

       The disposal consideration of RM2.9mil represented a premium of RM100,000 against the audited net assets of SM Broilers of RM2.8mil as at Dec 31, 2021, which translates to a price-to-book ratio of 1.04 times.

       In its filing with Bursa Malaysia, Sinmah said the disposal proceeds would be earmarked for the group’s development expenditure on its existing Taman Gambir Perdana mixed project (commercial and residential homes) in Johor.

       The gross development value of the group’s Taman Gambir Perdana project stood at RM191.33mil. At present, the group has recognised approximately RM37.34mil from the project and expects the remaining RM153.99mil from the said project to provide earnings visibility to the group.

       “The group is currently involved in poultry activities as well as intending to expand its activities in the housing development segment by sourcing for land banks and joint-venture opportunities within the property business,” Sinmah said.

       “In contrast to the poultry segment, the property development segment of the group has been the major profit contributor to the group for the financial year ended Dec 31, 2021,” it added.