Kim Hin gets privatisation offer of 85 sen per share from chairman, family

• The offer price represents a premium of nearly 85% over Kim Hin’s last traded price of 46 sen on July 3 before trading in the stock was suspended for the announcement. Shareholders will have until July 25 to consider the offer.

KUALA LUMPUR (July 4): Kim Hin Industry Bhd (KL:KIMHIN) is set to be taken private after its chairman Chua Seng Huat and family offered RM45 million to buy out the ceramic tile manufacturer.

Chua and his family investment vehicle Kim Hin (M) Sdn Bhd together are offering 85 sen per share for the remaining shares they don’t already own in Kim Hin, according to the notice of the unconditional voluntary takeover offer posted to Bursa Malaysia.

The offer price represents a premium of nearly 85% over Kim Hin’s last traded price of 46 sen on July 3 before trading in the stock was suspended for the announcement.

Shareholders will have until July 25 to consider the offer.

Seng Huat and his family—which includes his brothers Datuk John Chua Seng Chai and Chua Seng Guan, as well as his sisters Pauline Getrude Chua Hui Lin and Chua Yew Lin—now collectively own 62.25% in the company.

The offerors do not intend to maintain Kim Hin’s listing. “As such, the joint offerors will not be taking any steps to address the shortfall in the public shareholding spread of Kim Hin in the event Kim Hin does not meet the public spread requirement after the closing date," the notice said.

Kim Hin is usually lightly traded on Bursa Malaysia, averaging fewer than 20,000 shares exchanging hands daily for the past one year. The company has been loss-making since the financial year ended Dec 31, 2018 (FY2018).

For FY2024, its net loss narrowed to RM28.19 million from RM40.13 million a year earlier. For the most recent quarter ended March 31, 2025 (1QFY2025), Kim Hin posted a net loss of RM3.42 million.

As at end-March 2025, cash and cash equivalents stood at RM43.13 million, as Kim Hin logged retained earnings of RM64.05 million. Borrowings totalled RM11 million, of which RM9.06 million were current liabilities.

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