Bintai Kinden Proposes Regularisation Plan To Exit PN17 Status

KUALA LUMPUR, Sept 27 (Bernama) — Bintai Kinden Corporation Bhd (BKCB) has announced a proposed regularisation plan to exit its Practice Note 17 (PN17) status and ensure long-term sustainability.

In a statement today, the mechanical and electrical engineering services specialist and medical device manufacturer and facilities operator said that the plan is subject to Bursa Malaysia and shareholders’ approval at the upcoming extraordinary general meeting.

“A key component is the proposed diversification into the construction sector, which will complement the company’s core mechanical and electrical services engineering business. 

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“This diversification will enable BKCB to tap into growing opportunities within Malaysia’s construction industry, with the construction segment expected to contribute at least 25.0 per cent to its net profits soon,” it said. 

Additionally, the proposed share capital reduction involves cancelling up to RM160.0 million of issued share capital to eliminate accumulated losses, strengthening the company’s capital base and creating a healthier foundation for growth.

BKCB also plans for a private placement of 244 million new ordinary shares, representing 20.0 per cent of the total issued shares, to raise up to RM19.5 million. 

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“This will provide the necessary liquidity to enhance the company’s working capital and improve the balance sheet,” it noted. 

As part of the plan, it said the proposed granting of an option will allow managing director cum chief executive officer Datuk Tay Chor Han to subscribe up to 146.39 million new shares, representing 10.0 per cent of the enlarged total issued shares following the completion of the proposed placement.

“Finally, BKCB is introducing an employees’ share option scheme (ESOS), which will involve up to 15.0 per cent of the total issued shares,” it said. 

The company expects to submit its proposed regularisation plan to Bursa Malaysia for approval within a month and will update shareholders on the progress of the regularisation plan and its future developments.

On March 30, 2023, BKCB was classified as an affected listed issuer under PN17 of the Main Market Listing Requirements of Bursa Malaysia after its subsidiary defaulted on RM109.0 million worth of financing facilities.

— BERNAMA