Chin Hin to buy stake in Aima

From left: Aima Construction Sdn Bhd chairman Khor Ooi Min, Aima Construction Sdn Bhd managing director Khor Ken Yeon, Chin Hin Group Property Bhd executive director Chiau Haw Choon and Chin Hin Group Property Bhd chairman Datuk Seri Chiau Beng Teik.

KUALA LUMPUR: Chin Hin Group Property Bhd (CHGP) has proposed to acquire 45% stake in Aima Construction Sdn Bhd for RM31.5mil, aiming to transform into a major property and construction player in Malaysia.

It has inked a conditional share sale agreement with Uniplaza Sdn Bhd for the proposed acquisition of ordinary shares in Aima which would be fully satisfied via the allotment and issuance of up to 35.79 million new ordinary shares in CHGP at an issue price of 88 sen per share.

The proposed acquisition is expected to be completed by the third quarter of 2021.

“Following the proposed acquisition, Aima will become an associate company of CHGP, and this will allow us to have indirect access to the on-going 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 consideration 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 said.

Meanwhile, Aima managing director Khor Ken Yeon said synergistic benefits are expected to arise from the proposed acquisition as both CHGP and Aima are operating in and servicing the same industry.

“Especially in regard to CHGP’s plans to launch RM3.73bil worth of projects in the coming years, we can expect to see significant participation from our end as construction work for properties has been our forte for several decades.”