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- The facility is to partially finance costs and expenses incurred related to the capital expenditure works of its wholly owned subsidiary, Plaza on Hyde Park Ltd, to meet general corporate working capital requirements and to refinance certain existing Malaysian banking facilities.
KUALA LUMPUR (Oct 9): Malayan United Industries Bhd (KL:MUIIND), or MUI, has secured a term loan facility of US$20 million (RM84.3 million) granted by Singapore-based direct lending fund Indies Special Opportunities LV Ltd.
The facility is to partially finance costs and expenses incurred related to the capital expenditure works of its wholly owned subsidiary, Plaza on Hyde Park Ltd, to meet general corporate working capital requirements and to refinance certain existing Malaysian banking facilities.
This allows the group to optimise its capital allocation and ensure the continued progress of the renovation and refurbishment of Corus Hyde Park Hotel, it said in a filing.
The facility "enhances overall liquidity to support the group’s general corporate and working capital needs, enabling greater financial flexibility and operational efficiency”, it added.
With the latest borrowings of US$20 million, the group expects to incur an additional interest expense and other finance costs of approximately US$2.6 million (equivalent to approximately RM11.1 million) for the financial year ending June 30, 2026 (FY2026), which translates into an additional loss per share of 0.34 sen, according to the filing.
Its gearing ratio is expected to increase to 0.97 times for FY2026, from 0.87 times, while net assets per share is expected to remain at 25 sen.
The group's cash and cash equivalents stood at RM143.03 million as at end-June 2025, while total borrowings stood at RM905.72 million and lease liabilities at RM98.52 million.
Indies Special Opportunities IV is a direct lending fund managed by investment manager Indies Capital Partners Pte Ltd.
Founded in 2009 and headquartered in Singapore, Indies Capital specialises in private credit and private equity solutions. It also manages capital for leading sovereign wealth funds, regional financial institutions, family offices and high net worth individuals, the company's website showed.
MUI’s share price closed down half a sen or 7.69% at six sen, giving the group a market capitalisation of RM194 million.
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