Resintech Subsidiary Secures RM41 Mln Financing For Hostel, Retail Development

KUALA LUMPUR, Aug 14 (Bernama) -- Resintech Bhd's 55 per cent-owned subsidiary, Johan Panglima (M) Sdn Bhd, has secured Commodity Murabahah term financing facilities totalling RM41 million from Alliance Islamic Bank Bhd to redeem land and part-finance a hostel and retail development in Selangor.

In a filing with Bursa Malaysia today, the plastic pipes and fittings manufacturer said the facilities would be used to redeem four parcels of land in Mukim Telok Panglima Garang, Kuala Langat, and to part-finance 80 per cent of the construction cost of the proposed development.

“The facilities are not to have any effect on the issued share capital of the company as well as the shareholdings of directors and substantial shareholders as the facilities do not involve the issuance of new ordinary shares,” it said. 

The proposed development will comprise 158 hostel units, four retail shops, a canteen and other facilities.

On the financial impact, Resintech said the financing facilities are expected to increase the group's gearing ratio for the financial year ending March 31, 2027 (FY 2027).

The group also said none of the company’s directors, major shareholders or persons connected to it have any direct or indirect interest in the facilities.

Resintech also said that the facilities are not subject to the approval of its shareholders or any regulatory authorities.

“The board, after having considered all aspects of the acceptance of the facilities, is of the opinion that the acceptance of the facilities is in the best interest of the Resintech Group,” it said.

 -- BERNAMA