KUALA LUMPUR, March 10 — Chin Hin Group Property Bhd (CHGP) has proposed to acquire 45 per cent shares in Aima Construction Sdn Bhd for RM31.5 million.
In a filing with Bursa Malaysia today, CHGP said the acquisition will be fully satisfied via the allotment and issuance of 35.795 million new ordinary shares at an issue price of 88 sen per share.
The acquisition is pursuant to a conditional share sale agreement between CHGP and Uniplaza Sdn Bhd (vendor) dated March 10, 2021.
CHGP said it has also proposed the diversification of the group’s existing businesses to include the construction business.
It said upon completion of the proposed acquisition, Aima Construction will be an associate company of CHGP.
“The proposals will allow the group to have indirect access to the ongoing and future projects of the construction company.
“It will allow CHGP to be involved in the construction business, build its own in-house construction team, which is expected to benefit CHGP in the long run.
“As such, the acquisition will not constrain CHGP’s working capital and future expansion purposes,” it added.
Given the established business and positive historical financial performance of Aima Construction, the board expects that the acquisition will contribute positively to the future earnings of the group.
“Barring any unforeseen circumstances, both proposals are expected to be completed by the third quarter of 2021,” it said. — Bernama
