In a filing with Bursa Malaysia today, Parkson Holdings said the loan facility is for a term of 36 months commencing from the first drawdown date.

The company said the loan facility would be used to refinance the existing loans of the PRGL Group.

Parkson Holdings said the loan agreement imposes, among others, a specific performance obligation on a controlling shareholder of PRGL.

“Pursuant to the loan agreement, Cheng Heng Jem (together with his wife, Chan Chau Ha alias Chan Chow Har, who is deemed to be interested in Cheng’s interest in PRGL) (controlling shareholder) shall remain the single largest ultimate beneficial owner of PRGL.

“In the event, the controlling shareholder ceases to be the single largest ultimate beneficial owner of PRGL, all outstanding advances and all interests accumulated thereon, and all or any other sums payable by PRGL under the loan agreement would be declared as immediately due and payable, and the total commitment under the loan agreement would be cancelled,” it said.

As at the date of the PRGL announcement, the controlling shareholder is indirectly interested in about 54.97% of the issued share capital of PRGL.

The entering into the loan agreement by PRGL does not have a material impact on the earnings of Parkson Holdings for the financial year ending Dec 31, 2024, and the net assets of the group based on the audited consolidated statement of financial position of the company as at Dec 31, 2022.

The announcement was also made by PRGL to the Hong Kong stock exchange today.

As at 5pm, Parkson Holding’s share price was down by 0.5 sen or 2.04% at 25 sen, giving it a market capitalisation of RM287.23 million.