Bintai Kinden's regularisation plan approved by Bursa Malaysia to exit PN17

KUALA LUMPUR: Bursa Malaysia has granted approval for Bintai Kinden Corporation Bhd's regularisation plan, designed to restore the company's financial health and remove its Practice Note 17 (PN17) status.

The proposed regularisation plan entails the issuance of 244 million new shares through a private placement, up to 146.4 million shares under a granting of options scheme, and additional shares amounting to 15 per cent of the company's issued shares through an employees' share option scheme (ESOS). 

The regularisation plan will enable the company to stabilise its financial foundation, retain and motivate key personnel through the ESOS, and meet the public shareholding spread requirement in compliance with Bursa Securities' guidelines. 

These measures are expected to position the company as a stronger, more resilient player in the market while creating sustainable value for its stakeholders.

The approval of our proposed regularisation plan is a pivotal moment for Bintai Kinden, as it allows us to move forward with a clear strategy for financial recovery and growth. This plan strengthens our balance sheet, enhances shareholder value, and provides a foundation for long-term stability," said its managing director cum chief executive officer Datuk Tay Chor Han in a statement. 

The PN17 classification came about because Bintai Kinden and its subsidiary Optimal Property Management Sdn Bhd (OPM) could not service a RM109 million, 17-year Islamic financing facility from MBSB Bank Bhd.

The regularisation plan is expected to position Bintai Kinden as a stronger, more resilient market player while creating sustainable value for its stakeholders.

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