Bintai Kinden to settle subsidiary's RM23.39 mil debt with Handal Jayabina

TheEdge Wed, Oct 21, 2020 11:23pm - 6 months ago


KUALA LUMPUR (Oct 21): Bintai Kinden Corporation Bhd (BKCB) has proposed to fully settle an outstanding debt of RM23.39 million owed by its wholly-owned subsidiary, Optimal Property Management Sdn Bhd (OPM), to Handal Jayabina Sdn Bhd (Handal).

In a filing with Bursa Malaysia today, BKCB said the outstanding debt essentially comprised all outstanding sum under the construction contract on July 1, 2016 whereby Handal Jayabina had been appointed by OPM as the main contractor for Kolej University Islam Melaka’s (KUIM) in-campus accommodation construction.

It said OPM, which is principally involved in property management, was awarded on Dec 3, 2015 with a 25-year concession to design, construct, complete, operate and maintain the entire in-campus accommodation and related facilities for KUIM.

BKCB said the settlement would be made via the issuance of 31.8 million shares in BKCB at an issue price of 64.5 sen per unit worth RM20.51 million, 28,500 shares issuance in OPM worth RM2 million and the balance of RM886,091 to be settled by way of cash payments.

"Upon completion, the effective equity interest in OPM by BKCB will be diluted from 100% to 94.6% whereby Handal Jayabina will hold the remaining 5.4% equity interest in OPM.

"Having considered the above and other available options, the board is of the opinion that the debt settlement is the most appropriate means to satisfy the outstanding debt without incurring additional debt obligation/interest cost as well as to minimise potential cash outflow instead of utilising internal funds or external bank borrowings,” it said.

Barring any unforeseen circumstances, it said the proposed debt settlement is expected be completed in the first half of 2021.






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