KUALA LUMPUR (May 10): Ajiya Bhd (KL:AJIYA) has entered into a loan agreement with Chin Hin Group Bhd (Chin Hin)(KL:CHINHIN) to provide a loan of up to RM250 million to Chin Hin.
The loan facility will have an interest rate of 7.5% per annum.
Ajiya said the loan is expected to be drawn down by Chin Hin in several tranches within 24 months from the date when all conditions of the loan agreement have been fulfilled.
The exact loan amount to be drawn down by Chin Hin in each tranche shall be determined later, based on the actual funding requirements of Chin Hin at the material time.
“The financial assistance represents a strategic shift, which will allow Ajiya to re-mobilise its excess capital and resources to provide the necessary funding requirements to Chin Hin, for it to undertake the proposed acquisition of shares in Chin Hin Construction Engineering Sdn Bhd and Kayangan Kemas Sdn Bhd,” it said in a stock exchange filing.
The financial assistance is also for the expansion of Chin Hin’s building material division and construction division, as well as other investment purposes, it said.
“The board believes that the financial assistance will bolster Chin Hin’s capability to undertake additional construction and property development projects, which in turn will provide Ajiya the opportunity to participate in more projects and increase its revenue base,” it added.
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Source: EdgeProp.my
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