Kuala Lumpur:SD Guthrie Bhd experienced a rise in its share price in early trading after announcing the sale of 657.09 hectares in Bukit Kerayong, Selangor, to Bukit Kerayong Industrial Developments (BKID) for RM933.57 million.

According to BERNAMA News Agency, the company has also partnered with Bumi Assets Sdn Bhd and YTL Power International Bhd to develop the site into an industrial park. The development will focus on creating a light-to-medium industrial park, featuring commercial components and supporting infrastructure.

At 10.40 am, SD Guthrie's shares increased by three sen to RM5.80, with 351,700 shares changing hands. The joint venture will be executed through BKID, where SD Guthrie will hold a 30 percent equity interest via its wholly owned subsidiary, SD Guthrie Land Ventures Sdn Bhd.

MBSB Investment Bank Bhd expressed optimism about the deal in a research note, describing the partnership as mutually beneficial and likely to strengthen SD Guthrie's industrial business. The bank noted that the valuation is fair, given SD Guthrie's 30 percent stake, which positions the company to benefit from industrial land development and a stable income base. MBSB maintained a 'Buy' recommendation with an unchanged target price of RM7.65 per share.