Plytec seeks up to RM7.52m in facilities for Kuala Langat land deal

PETALING JAYA (Sept 8): Plytec Holding Bhd has applied for banking facilities of up to RM7.52 million to partly finance its proposed RM6.21 million acquisition of freehold land in Kuala Langat, Selangor, and the estimated premium for its planned land conversion.

In a Bursa Malaysia filing on Monday (Sept 7), Plytec said the application remained pending and no letter of offer had been issued as at that date.

The additional disclosure followed a query from Bursa Malaysia Securities Bhd dated Sept 4 on the proposed acquisition, which Plytec first announced on Sept 3.

Plytec Formwork System Industries Sdn Bhd, a wholly-owned subsidiary of the group, is acquiring the 4.83-acre freehold vacant site held under Geran 33014, Lot 2613, Mukim Tanjong Duabelas, Daerah Kuala Langat, from JP Lim & Sons Sdn Bhd for RM6.21 million cash.

The land is currently categorised for agricultural use. Plytec, which specialises in construction engineering solutions and services, said the proposed acquisition would support its longer-term expansion and future operational requirements, with the site located near its existing facility and manufacturing plant.

Under the proposed funding plan, RM5.59 million, or 90% of the purchase consideration, is expected to be financed through the proposed banking facilities, while the remaining RM620,812.75 would be funded through internally-generated funds.

Plytec has estimated the conversion premium at RM2.15 million, of which RM1.94 million, or 90%, is expected to be financed through the proposed banking facilities and RM215,050 through internally generated funds.

This brings the total estimated funding requirement for the acquisition and conversion to RM8.36 million, comprising up to RM7.52 million in proposed bank borrowings and RM835,862.75 in internally-generated funds.

The balance purchase consideration of RM5.59 million is payable within 120 days from the date of the sale and purchase agreement, with an automatic extension of 30 days. The estimated conversion premium would be payable only upon approval of the conversion by the Selangor State Authority.

Plytec said it expected the banking facilities to be in place before the respective payments fall due.

Any drawdown of the proposed facilities remains subject to approval of the application, issuance of a letter of offer and the purchaser’s acceptance of its terms and conditions.

If the facilities are not obtained, or are approved for less than the amount applied for, Plytec said the group would fund the shortfall through internally-generated funds and/or other available financing sources.

The board said it was of the view that the group had sufficient financial resources to fund the proposed acquisition and conversion.

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