Meta Bright secures RM43.9m banking facilities to drive growth in concrete segment
PROPERTY and hospitality-centric Meta Bright Group Bhd (formerly Eastland Equity Bhd) has successfully secured RM43.85 mil in banking facilities from Hong Leong Bank Bhd for its two subsidiaries Expogaya Sdn Bhd and Jesselton Concrete Sdn Bhd.
These new and extended facilities will further cement the Main Market-listed company’s position in the concrete sector as the largest ready-mix supplier in Sabah, thus allowing it to support the state’s rapidly expanding infrastructure needs effectively.
In a nutshell, the financial facilities are set to fuel operational scalability for both Expogaya and Jesselton by facilitating the procurement of advanced machinery, ensuring consistent working capital as well as supporting their project expansions to meet Sabah’s escalating demand for construction materials.
“Securing these facilities reflects a solid endorsement from Hong Leong Bank, underscoring the financial community’s confidence in our growth trajectory and operational resilience,” commented Meta Bright’s executive director (corporate and strategic planning) Derek Phang Kiew Lim.
Derek Phang Kiew Lim
“This added financial support enables us to meet the escalating demand for concrete in Sabah, fuelled by large-scale infrastructure projects outlined in Budget 2025. With these facilities, we are well-prepared to reinforce our role as the region’s primary concrete supplier, providing materials essential for Sabah’s development.”
More broadly, today’s (Oct 28) announcement aligns well with Budget 2025’s RM6.7 bil allocation towards rural development in Sabah by targeting essential infrastructure projects.
Additionally, the RM9.7 bil allocation to continue the Pan Borneo Highway project, particularly routes from Kota Belud to Kudat and Telupid to Ranau, highlights Sabah’s infrastructure boom.
These Federal government-funded projects are anticipated to drive substantial demand for high-quality concrete.
Thus far, Meta Bright’s acquisition of Expogaya has been instrumental in positioning the group as a leader in the concrete supply chain, particularly within the framework of Sabah’s infrastructure growth.
Expogaya Sdn Bhd
The RM7.4 bil Sabah-Sarawak Link Road Phase 2 project and the RM253 mil expansion of Tawau Airport are further examples of infrastructure projects that the group is well-prepared to support given its strengthened production capabilities and enhanced capacity.
The facilities allocated to Expogaya which is a 70%-owned subsidiary of Meta Bright include RM5 mil in industrial hire purchase, RM2.5 mil forward exchange contract facility and RM23.35 mil in various banking facilities, totalling RM33.35 mil.
Jesselton which is a wholly-owned subsidiary of Expogaya has also accepted RM1 mil in industrial hire purchase alongside RM12 mil in additional banking facilities.
At 3.52pm, Meta Bright was down 0.5 sen or 3.45% to 14 sen with 1.04 million shares traded, thus valuing the company at RM354 mil. – Oct 28, 2024