KUALA LUMPUR (March 11): Chin Hin Group Property Bhd (CHGP) is looking to diversify its business to include construction through the acquisition of a 45% stake in Aima Construction Sdn Bhd for RM31.5 million. The group is currently involved in the assembly and sales of new and rebuilt commercial vehicles and property development.

CHGP said the proposed acquisition will enable the group to tap into the construction industry, which is complementary to its existing property development business.

CHGP has entered into a conditional share sale agreement with Uniplaza Sdn Bhd for the proposed acquisition, which will be fully satisfied via issuance of up to 35.8 million new shares in CHGP at an issue price of 88 sen per share. The directors of Uniplaza are Khor Ooi Min, Teoh Hooi Pek, Khor Ken Jen, Khor Ken Yeon and Khor Yee Lin.

"Following the proposed acquisition, Aima will become an associate company of CHGP, and this will allow us to have indirect access to the ongoing and future projects of Aima," CHGP executive director Chiau Haw Choon said in a statement.

"In addition, it will accelerate CHGP's expansion plan without an initial cash outlay as the purchase consideration will be fully satisfied via allotment and issuance of shares. Ultimately, our goal is to transform CHGP into a major property and construction player — therefore this corporate exercise fits into our strategy perfectly," he added. Aima's total order book stands at RM320 million.

Barring any unforeseen circumstances, the proposed acquisition is expected to be completed by the third quarter of 2021.

CHGP shares closed up one sen or 1.09% at 93 sen yesterday, bringing a market capitalisation of RM324 million. A total of 4.24 million shares were traded.

Get the latest news @ www.EdgeProp.my

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories

SHARE
RELATED POSTS
  1. Analysts keep 'overweight' on construction sector, favours key players in Pan Borneo project, flood mitigation
  2. Chin Hin posts sharply higher 4Q net profit on higher contributions by JVs
  3. MRCB's 4Q profit jumps to RM80m on disposal gains, from RM13m a year ago