news

Chin Hin Group buys Solarvest shares but sells warrants

KUALA LUMPUR (Dec 18): Chin Hin Group Bhd has raised its stake in Solarvest Holdings Bhd to 27.50%, from 25.48% previously, after it mopped up additional 13.52 million shares or 3.62% for RM16.10 million cash, or RM1.19 per share. 

In a Bursa Malaysia filing on Friday (Dec 17), the group said the share purchase was done on the open market from Nov 24 to Dec 9.

Chin Hin is the second largest shareholder of Solarvest after Atlantic Blue Holdings Sdn Bhd, which holds 33.35%.

“Chin Hin's decision to increase its shareholdings in Solarvest is due to Solarvest’s prominent future earnings prospect and strong outstanding order books in the solar energy business.

“The acquisition was funded entirely from internally generated funds,” the group said in the filing. 

Interestingly, the group sold some 14.4 million units of Solarvest’s Warrant A between Nov 30 to Dec 16, for an aggregate sum of RM7.21 million. 

“Chin Hin’s decision to decrease its warrant holdings in Solarvest (is) to realise its investment. The disposal proceeds will be channelled back to the company’s fund, which will be used for future expansion,” it revealed. 

Interestingly, Chin Hin obtained Warrant A via bonus issue in March this year. The exercise price of the derivatives is at RM1 versus the underlying share price of RM1.24 on Friday. However, the company opted to buy shares on the open market at a higher price. The average price between Nov 24 and Dec 9 is RM1.18.  

According to the group’s website, Chin Hin's business portfolio encompasses five core divisions — Building Materials, Property Development, Construction, Home & Living and Solar Energy. 

Shares in Chin Hin settled eight sen or 3.48% lower to RM2.22 on Friday, giving it a market share of RM1.96 billion. 

Get the latest news @ www.EdgeProp.my

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
SHARE
RELATED POSTS
  1. Chin Hin Group emerges as single largest shareholder in Ajiya with 24.68% stake
  2. Govt to incentivise other growing areas of solar industry in Budget 2022 — Solarvest CEO
  3. Chin Hin Group completes acquisition of Chin Hin Property