KUALA LUMPUR: Datuk Seth Yap Ting Hau, the controlling shareholder of Meridian Bhd (formerly Meda Inc Bhd), is disposing several assets, including a mall in Penang to return the company to the black in 2021.
Yap, who controls up to 31 per cent stake in Meridian directly and via his private venture M101 Group, said Meridian was poised to break even next year.
"We are selling off several assets in Meridian for close to RM100 million. We have put in the market about 10 acres of land in Melaka, some seven acres in Cyberjaya and The Summit in Bukit Mertajam. We will utilise the money from the assets disposal to part finance our Malaysia Tourism City (MTC) project in Melaka," said Yap.
The Summit comprises a five-storey mall with 314,979 sq ft of space, a seven-storey office tower and 662 parking bays and Meridian was looking at selling it for RM50 million, Yap said.
He was speaking to the New Straits Times on the sidelines of the launch and signing of Hasbro licensing agreement between M101 Group and Hasbro Live! for the world’s first Hasbro water theme park here today.
Yap said 2020 was a critical year for Meridian to start generating revenue.
"Meridian is not making money but the company's NTA (net tangible asset) is quite solid. We want to change the direction of the company where it will be 100 per cent focused on developing the MTC. No company wants to be loss-making. I came in last June because I saw the potential the 622-acre land can generate for the company," Yap said.
Meridian reported a net loss of RM3.1 million in its financial year ended December 31, 2014 (FY14), RM55.7 million in FY15, RM6.7 million in FY16 and RM8.8 million in FY17.
As at end-2017, it had accumulated losses of RM125.9 million at the group level. Its revenue fell significantly from RM106.6 million in FY15 to RM21.4 million in FY17.
"The company is loss-making but it is asset rich with over 700 acres of land in its coffers. We want to unlock the value of the land and turn the company around through the MTC project. The weekend market will generate recurring income for the company starting next year," Yap said.
He said the Hasbro-themed water theme park will be an iconic branded attraction that will be an essential anchor at the heart of the MTC master plan.