KUALA LUMPUR: Chin Hin Group Bhd
(CHGB) has proposed to increase its stake in Ajiya Bhd by another 12.27 per cent through the acquisition of 38.37 million additional shares for RM54.2 million -- a move that would bring its shareholding in the latter to 66.36 per cent.
In a filing with Bursa Malaysia today, the group said it has entered into a Share Sale Agreement (SSA) with Ajiya’s major shareholder, Yeo Ann Seck for the acquisition on the basis of RM1.45 for each ordinary share held.
CHGB said the acquisition would allow the group to further consolidate its interest in Ajiya, a manufacturer and supplier of building materials, adding that it will also enhance the overall earnings attributable to shareholders and further improve shareholder value.
"The proposed acquisition is also in line with CHGB’s objective of increasing its stakes in companies with good profitability and potential for future growth which will then contribute positively to the group’s consolidated profitability,” it said.
Ajiya’s prospects are closely related to the construction and property development industry. As such, CHGB believes that it is poised to benefit from the various impetus for the construction industry in Malaysia, including the anticipated recovery of the property development and construction industry.
The group added that the exercise will be funded from internally generated funds and borrowings, the proportion of which will be determined at a later date.
To-date, Ajiya’s issued share capital stood at RM98.88 million, comprising over 304.58 million ordinary shares. - Bernama
