MALAYAN United Industries Bhd (MUI) has renewed its term-loan facilities totalling £100 mil (RM539.3 mil) by its indirect wholly-owned subsidiary, Plaza On Hyde Park Ltd on March 3.
In a Bursa Malaysia filing on March 5, the company said there are two term-loan facilities – the renewal term-loan facility (1) for Plaza On Hyde Park worth of £79.625 mil (RM429.418 mil) and a new term-loan facility (2) of £20.375 mil (RM109.882 mil) granted by United Overseas Bank Ltd, London branch.
It said the purpose of the funding is to refinance an existing term-loan facility and finance the refurbishment and renovation of Corus Hotel Hyde Park, London.
According to MUI, the term-loan facilities have no effect on the share capital and the shareholdings of substantial shareholders of the company.
Term-loan facility (2) would result in the MUI Group incurring additional interest expense, translating into an additional loss per share of 0.13 sen.
Also, its gearing ratio is expected to increase from 1.36 to 1.54, based on the audited total equity of the group of RM604.236 mil as at June 30, 2019.
MUI shares were traded at 17 sen before the midday break, giving it a market capitalisation of RM152.81 mil on March 5.
