BBR Holdings (S) Ltd Issues Corrigendum on Senai, Johor Property Disposal

Key Points from the Corrigendum

• Correction to Estimated Net Proceeds: BBR Holdings (S) Ltd has issued a correction regarding the estimated net proceeds from the disposal of its property in Senai, Johor, Malaysia. The correct estimated net proceeds are approximately RM22,100,000 (approximately S\$6,970,340) after deducting transaction expenses and real property gains tax. The previously stated figure of S\$22,100,932 was incorrect.
• Utilization of Proceeds: The company intends to use the proceeds from the disposal to repay the outstanding loan and mortgage on the property, as well as for general working capital purposes.
• Clarification on Loan Secured Year: The corrected announcement states that the loan secured against the property was taken in 2022, not 2023 as previously indicated.
• Strategic Rationale: The Board has reiterated that the disposal will allow the Group to realize the value of the property, reduce liabilities, improve gearing, and reduce interest expenses.

Important Information for Shareholders

• Impact on Balance Sheet: The disposal will significantly reduce the Group’s outstanding loan and mortgage liabilities, thereby improving its gearing ratio and reducing interest expenses. This is a positive development for the company’s financial health and could have a direct impact on valuation metrics.
• Correction to Financial Figures: The previously overstated net proceeds (S\$22.1 million vs. S\$7 million) may have led to inflated expectations among shareholders. The correct figure is substantially lower, which is material and may affect investor sentiment and share valuation.
• Use of Proceeds: The clear intention to use proceeds for liability reduction and working capital demonstrates prudent financial management, which is generally viewed favorably by the market.
• Transparency and Governance: The company’s issuance of a corrigendum reflects its commitment to transparency and good governance, which is essential for maintaining investor confidence.

Details of the Corrigendum

BBR Holdings (S) Ltd, through its subsidiary BBR Construction Systems (M) Sdn. Bhd., had previously announced the disposal of a property located in Senai, Johor, Malaysia. In its original announcement dated 13 November 2025, the company had mistakenly stated the Singapore dollar equivalent of the net proceeds as S\$22,100,932. The Board has now clarified that the actual amount is approximately S\$6,970,340.

The net proceeds, amounting to RM22,100,000, will be used primarily to repay the outstanding loan and mortgage associated with the property, as well as to provide general working capital for the Group. The property in question was charged to a financial institution as security for a loan secured in 2022 to finance its purchase.

The Board believes that the disposal is in the best interests of the company, as it will enable the Group to realize the value of the property, use the net proceeds to repay outstanding mortgage amounts, reduce liabilities, and improve the Group’s gearing ratio. This move is expected to enhance the financial stability of the Group and lower its interest expenses going forward.

Save for the corrected figures and clarifications, all other information in the previous announcement remains unchanged.

Potential Share Price Impact

• The correction to the net proceeds is material and may affect investor expectations and share price in the short term, especially for those who had anticipated a higher cash influx based on the earlier figure.
• The positive impact of reducing debt and improving gearing could offset the negative sentiment from the correction, depending on market perception of the company’s overall financial strategy.
• Investors should monitor further disclosures from the company regarding the actual impact on the balance sheet and any potential redeployment of capital.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors are advised to conduct their own research or consult a qualified financial advisor before making investment decisions.

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