Chin Hin closes Ajiya MGO with 54.33% stake

• Chin Hin has also received acceptances for 0.18% or 525,200 shares under the offer, which are subject to verification, after the posting date and up to the closing date.

KUALA LUMPUR (Jan 3): At the close of Chin Hin Group Bhd's mandatory takeover offer (MGO) for the remaining 65.9% stake in Ajiya Bhd, Chin Hin received acceptances for 12.31 million shares, or the equivalent of a 4.17% stake. Consequently, its shareholding in Ajiya has been raised to 54.33%, according to its filing on the stock exchange.

Chin Hin has also received acceptances for 0.18% or 525,200 shares under the offer, which are subject to verification, after the posting date and up to the closing date.

The MGO, launched in September 2023, came on the heels of Chin Hin's proposal to acquire a 2.11% stake in Ajiya Bhd at RM1.53 per share, which increased its shareholding to 34.1% from 32%, triggering the offer.

On Dec 13, 2023, Chin Hin's conditional MGO became unconditional as its collective shareholding, together with persons acting in concert, surpassed 50%.

Independent adviser BDO Capital Consultants Sdn Bhd had recommended that Ajiya shareholders accept the MGO, even though it deemed the MGO as "not fair, but reasonable".

Chin Hin became Ajiya's largest shareholder with a 24.68% stake in March 2022. It emphasised that the acquisition would enable the expansion of its product range in the building materials division to high-value-added safety glass products, metal roofing, metal doors and window frames.

Chin Hin's shares closed eight sen or 2.25% lower at RM3.47 on Wednesday, which translates into a market capitalisation of RM6.14 billion. Ajiya's shares closed unchanged at RM1.52, which values the company at RM461.46 million.

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