Binasat’s Property Diversification Faces Another Deadline Extension

Binasat Communications Bhd has secured another three-month extension to settle the remaining cash payment tied to its ambitious property acquisition and diversification exercise, pushing the deadline to Aug 16, 2026, from the earlier May 17 deadline.

From the latest Bursa Malaysia filing, I learned that Binasat’s acquiring vehicle, BDSB, has only paid RM11.54 million out of the total RM33.83 million cash obligation required under the proposals. This means around 34% of the payment commitment has been fulfilled so far, leaving approximately RM22.29 million still outstanding.

What stands out is the slow pace of settlement. During the previous extension period between November 2025 and May 2026, BDSB only managed to pay an additional RM2.54 million, after having already paid RM9 million earlier. The modest progress over six months suggests that funding execution may still be a challenge.

The proposals, first announced in December 2024, involve four interconnected corporate exercises:

• acquisition and leasing of SBP Properties,
• acquisition of Empire City Properties,
• diversification into the property sector, and
• a private placement intended to help fund the transactions.

The exercise reflects Binasat’s strategic shift away from relying solely on its traditional communications and satellite services business toward property ownership and management. The targeted assets are linked to the established Empire City development area in Damansara Perdana together with the SBP property portfolio.

Another key takeaway is that this marks the fourth extension granted since the proposals were first announced. The repeated rollovers indicate that while the company remains committed to completing the acquisitions, the funding and transaction completion process is taking longer than initially anticipated.

The filing also does not clarify how the remaining RM22.29 million will be funded. There was no confirmation on whether proceeds from the proposed private placement have already been utilised or reserved for the settlement.

If BDSB successfully settles the remaining balance by Aug 16, the conditions precedent tied to the SBP and Empire City acquisitions would move closer to completion, paving the way for the transactions to be finalised and officially completed.