Bintai Kinden managing director and CEO Datuk Tay Chor Han
KUALA LUMPUR: Bintai Kinden Corp
Bhd has announced its proposed regularisation plan, which will include a proposed diversification into the construction sector.
The group, which plans to submit its proposed regularisation plan to Bursa Malaysia for approval within a month, said this was a key component of its strategic measures to uplift its Practice Note 17 (PN17) status.
The proposed diversification into the construction sector is expected to complement its core mechanical and electrical (M&E) engineering business.
"The value of work done in the construction sector reached RM38.9 billion in the second quarter of 2024, with a 20.2% growth rate, driven by civil engineering and residential building projects.
"We are well-positioned to benefit from this momentum through our diversification into construction, which we expect will significantly boost our revenue and contribute to more than 25% of our profits in the near future," said BIntai Kinden managing director and CEO Datuk Tay Chor Han in a statement.
Further to the proposed regularisation plan, the group also proposes to reduce its share capital with the cancellation of RM160mil of issued share capital to eliminate accumulated losses, strengthen its capital base and create and healthier foundation for growth.
There are also plans for a private placement of 244 million new shares, representing 20% of the total issued shares to raise up to RM19.5mil for working capital and an improved balance sheet.
Additionally, the group proposes the granting of an option to allow Tay to subscribe to up to 146.4 million new shares, or 10% of the enlarges total issued shares following the completion of the proposed placement.
Finally, the group will introduce an Employees’ Share Option Scheme (ESOS), which will involve up to 15% of the total issued shares to incentivise and retain key personnel.
"With the regularisation plan and a strong market outlook, we are confident in delivering sustainable growth and creating long-term value for our shareholders," said Tay.
Bintai Kinden said it has successfully restructured the banking facilities extended to its group of companies and has effectively rescheduled the majority of its debt obligations to creditors.
The group said it will update shareholders on the progress of the regularisation plan and its future developments.
