Selangor: Resintech Bhd's 55 per cent-owned subsidiary, Johan Panglima (M) Sdn Bhd, has secured Commodity Murabahah term financing facilities totalling RM41 million from Alliance Islamic Bank Bhd to redeem land and part-finance a hostel and retail development in Selangor. In a filing with Bursa Malaysia today, the plastic pipes and fittings manufacturer stated that the facilities would be used to redeem four parcels of land in Mukim Telok Panglima Garang, Kuala Langat, and to part-finance 80 per cent of the construction cost of the proposed development.

According to BERNAMA News Agency, the facilities are not expected to affect the issued share capital of the company or the shareholdings of directors and substantial shareholders as they do not involve the issuance of new ordinary shares. The proposed development will include 158 hostel units, four retail shops, a canteen, and other facilities.

Resintech mentioned that the financing facilities are expected to increase the group's gearing ratio for the financial year ending March 31, 2027 (FY 2027). The group also clarified that none of the company's directors, major shareholders, or connected persons have any direct or indirect interest in the facilities. Furthermore, the facilities are not subject to the approval of its shareholders or any regulatory authorities.

The board has reviewed all aspects of the acceptance of the facilities and believes that it is in the best interest of the Resintech Group.