Johor Plantations Group Berhad: Proposed Renewal of Authority to Purchase Its Own Shares

Date: 16 April 2026

Event: Forthcoming 4th Annual General Meeting (AGM) on 23 June 2026

Key Points from the Share Buy-Back Statement

• Proposal: Johor Plantations Group Berhad (JPG) is seeking shareholder approval to renew its authority to purchase up to 10% of its issued ordinary shares.
• Maximum Buy-Back Quantum: Up to 249,636,300 shares, after accounting for 363,700 treasury shares already held.
• Funding: The buy-back will be funded via retained profits and/or borrowings. As of 31 March 2026, JPG’s retained profits stand at RM1,338.8 million, with audited profits for FY2025 at RM1,391.2 million.
• AGM Details: Shareholders will vote on this proposal at the AGM scheduled for 23 June 2026, 11.00 a.m. at Sunway Hotel Big Box, Johor.

What Shareholders Need to Know

• Flexibility for the Company: The renewed authority allows JPG to purchase shares at any time until the next AGM or until the authority is revoked/varied by shareholders.
• Treatment of Purchased Shares: Shares bought back may be cancelled, retained as treasury shares, distributed as share dividends, resold, transferred for employee schemes, or used for other prescribed purposes.
• Pricing Restrictions: Purchases cannot exceed 15% above the 5-day volume-weighted average market price (VWAMP). Resale/transfer of treasury shares must comply with Bursa Malaysia rules regarding minimum pricing and timing.
• Recent Share Buy-Back Activity: JPG purchased 713,400 shares in February 2026 at prices ranging from RM1.55 to RM1.59 per share, totaling RM1,122,334.70. 349,700 shares were transferred in March 2026.
• Public Shareholding Spread: As of 18 March 2026, public shareholders hold 35.22% of shares. A full buy-back could reduce this to 28.04%, but the company will ensure compliance with Bursa Malaysia’s minimum 25% public spread requirement.

Potential Price Sensitive Information

• EPS and Dividend Enhancement: Cancellation or retention of purchased shares may improve earnings per share (EPS) and dividend per share, assuming company earnings remain stable.
• Use of Treasury Shares: Repurchased shares may be used for employee share schemes, potentially avoiding dilution from new share issuance.
• Financial Resource Impact: Buy-back reduces available funds for future investments and dividends; cash flow may be affected if funded via borrowings.
• Major Shareholder Changes: If the buy-back is fully implemented and shares are cancelled, Kulim (Malaysia) Berhad’s direct holding would rise from 64.5% to 71.6%, and Employees Provident Fund Board from 9.3% to 10.4%, increasing their relative influence.
• Share Price Trends: The last transacted price before the buy-back announcement and as at the latest practicable date was RM1.59. Monthly highs have reached RM1.93 (March 2026), and lows were RM0.975 (April 2025).

Risks and Disadvantages

• The buy-back will reduce JPG’s financial resources, potentially foregoing alternative investment or dividend opportunities.
• Borrowings for buy-backs could affect cash flow and gearing; however, the Board will ensure solvency and financial prudence.
• No material disadvantages are expected, as the Board will implement buy-backs only after careful consideration of the company’s financial position.

Board Recommendation

The Board unanimously recommends shareholders vote in favour of the share buy-back renewal, considering its potential benefits for EPS, dividend distribution, and flexibility in capital management.

Other Relevant Information

• No Directors, major shareholders, chief executive, or connected persons have any interest (direct or indirect) in the proposed renewal.
• No anticipated mandatory offer implications under Malaysian takeover rules.
• Material commitments as at 18 March 2026 total RM578.7 million, primarily for property, plant, equipment, and operating leases.
• Shareholders can inspect relevant company documents at JPG’s registered office up to the AGM date.

Conclusion

The renewal of share buy-back authority is a significant corporate action that may positively impact JPG’s share price by improving EPS, supporting share-based incentive plans, and enhancing capital management flexibility. The Board’s strong recommendation and recent share buy-back activity signal confidence in the company’s intrinsic value. Investors should assess the proposal carefully, as it may affect shareholder value, public spread, and the influence of major shareholders.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review official documents, consult professional advisors, and consider their own financial objectives before making any investment decisions. Past share price performance and Board recommendations do not guarantee future outcomes.

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