In a filing with Bursa Malaysia, Chin Hin said it entered into a conditional share sale agreements (SSAs) with How Lian Yeong and Ong Hang Ping respectively for the proposed acquisition.
As at Sept 11, Chin Hin and its persons acting in concert (PACs), hold in aggregate 94.4 million ordinary shares in Ajiya, representing 32.0% equity interest in Ajiya.
Upon completion of the proposed acquisition, the aggregate shareholdings of Chin Hin and its PACs in Ajiya will increase to 34.1% from 32%.
Accordingly, Chin Hin will be obliged to extend a conditional mandatory general offer (MGO) for all the remaining Ajiya shares not already owned at a cash offer price of RM1.53 per Ajiya share.
Chin Hin said the proposed Ajiya offer will be implemented upon the Ajiya SSAs becoming unconditional. Upon the Ajiya SSAs becoming unconditional, the company will serve a notice of the MGO to the board of directors of Ajiya respectively in accordance with Paragraph 9.10(1) of
the Rules, it said.
Chin Hin intends to maintain the listing status of Ajiya on the Main Market of Bursa Securities subsequent to the proposed Ajiya offer.
“Realising the need to grow and evolve its product offerings within the building materials business as well as providing a comprehensive product range within the property and home and living solutions segment, Chin Hin embarked on the acquisition of its current 24.41% stake in Ajiya in April 2022 which is mainly involved in the manufacturing of high value-added safety glasses, metal roofing, metal door and window products,” it said.
Post the initial acquisition of Ajiya, Chin Hin said it expanded the product ranges of its’ building materials division from drymix, ready mix concrete as well as mesh and steel bars to include the product offerings of Ajiya
“In addition, Chin Hin is also able to tap into Ajiya’s orderbook and client base as well as an extensive network of supply chain comprising factories, warehouses and offices located predominantly in Malaysia.
“This had augured well for Chin Hin Group as it had enabled the group to broaden its customer base, and distribution network as well as allowing Chin Hin to incorporate and integrate Ajiya products within Chin Hin’s construction and property divisions,” it said.