In a filing with Bursa Malaysia today, Chin Hin said the stake sale represented all of Solarvest shares held by Chin Hin.
"The parties shall complete the sale and purchase within one month from the unconditional date or such further period to be agreed by the parties,” it said.
The company also proposes to utilise RM102.72 million of the proceeds to repay part of the existing bank borrowings of Chin Hin and its subsidiaries, which amounted to RM790.89 million as at Dec 31, 2021.
On the rationale of the disposal, Chin Hin said the proposed disposal provides an avenue for the group to monetise its investment in Solarvest.
"The group will be able to utilise the RM103.28 million to repay its bank borrowings which will reduce the group’s gearing level and improve the group’s financial position with the enhancement of its current ratio and improve the group’s cash flow due to the lower interest expense,” it added. - Bernama