Mencast to sell 42B Penjuru Road for S$21m, locking in ~S$7.7m gain and pushing NTA per share up from 6.19 to 7.79 cents
Summary:
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Mencast’s unit has granted Grandwoods Trading an option to buy its JTC leasehold property at 42B Penjuru Road for S$21.0 million, versus a HY2025 carrying value of about S$12.3 million and an independent valuation of S$24.3 million.
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The disposal is expected to generate a gain of roughly S$7.7 million after about S$1.0 million of relocation and transaction costs, with net proceeds of around S$20.0 million earmarked mainly to repay loans secured on the property and other borrowings.
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Post‑transaction, illustrative NTA rises from S$28.6 million to S$35.9 million and NTA per share from 6.19 to 7.79 cents, while FY2024 pro forma EPS would have improved from 0.53 to 2.37 cents, reflecting deleveraging and the disposal gain.
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The sale forms part of Mencast’s broader debt restructuring and asset-optimisation plan and will help it exceed a S$55 million deleveraging target, without selling any revenue-generating business as propulsion and MRO operations will be relocated to adjacent 42A Penjuru Road.
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Based on Catalist Rule 1006, the deal is a discloseable transaction (relative figures 36.8% on NTA and 49.4% on consideration versus market cap), so no shareholder approval is required, though completion remains subject to JTC approvals, possible ROFR, use clearances and other conditions in the option.