Chin Hin divests steel wire products unit for RM70 mil, to pocket RM6.1 mil gain

• The buyer is EC Excel Wire Sdn Bhd, a company wholly owned by an individual named Ng Heng Hong, according to Chin Hin in a bourse filing announcing the deal on Thursday.

KUALA LUMPUR (July 31): Chin Hin Group Bhd (KL:CHINHIN) is disposing of its subsidiary Metex Steel Sdn Bhd, which specialises in steel welded mesh and wire products, for RM70 million. The all-cash transaction is expected to yield a gain of RM6.1 million for the group.

The buyer is EC Excel Wire Sdn Bhd, a company wholly owned by an individual named Ng Heng Hong, according to Chin Hin in a bourse filing announcing the deal on Thursday.

EC Excel's primary business activities include hardware trading, wire mesh manufacturing and processing, and logistics and transportation services.

Chin Hin said the divestment presents an opportunity to unlock and monetise its investment in Metex Steel. This move aligns with the group's broader strategy to streamline and reorganise its business activities, with expectations of improving its overall cash flow.

Proceeds from the sale have been earmarked to support the group's working capital requirements, fund business expansion initiatives and other ventures deemed to hold greater promise for the company.

The transaction is anticipated to be completed by the fourth quarter of this year.

Chin Hin's shares slipped two sen or 0.9% to close at RM2.29 on Thursday, valuing the group at RM8.11 billion. Year to date, the stock has dipped 3.8%.

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