Chin Hin to utilise RM50,000 gain on disposal of Hextar’s shares as working capital

• In a filing with Bursa Malaysia on Tuesday (March 28), Chin Hin said the original investment cost for the Hextar Industries Bhd (HIB)’s shares was around RM5.27 million.
• From the period between Dec 14, 2022 to Feb 28 this year, Chin Hin acquired 40.10 million ordinary shares in HIB by way of direct transfer at an average price of 61.3 sen per HIB share, representing 1.46% of HIB for a total purchase consideration of approximately RM24.60 million.

KUALA LUMPUR (March 28): Chin Hin Group Bhd said the disposal gain of RM50,000, after acquiring and disposing of Hextar Industries Bhd’s (HIB) shares, will be utilised as working capital.

In a filing with Bursa Malaysia on Tuesday (March 28), Chin Hin said the original investment cost for the HIB’s shares was around RM5.27 million.

From the period between Dec 14, 2022 to Feb 28 this year, Chin Hin acquired 40.10 million ordinary shares in HIB by way of direct transfer at an average price of 61.3 sen per HIB share, representing 1.46% of HIB for a total purchase consideration of approximately RM24.60 million.

On March 27, Chin Hin had disposed of 8.6 million ordinary shares in HIB by way of direct transfer at an average price of 62 sen per HIB share, representing 0.31% of HIB for a total consideration of approximately RM5.33 million.

Chin Hin decided to invest in HIB due to its future earnings prospects.

“The proceeds received from the disposal of shares will be used by the group for working capital,” said Chin Hin.

HIB, which is listed on the ACE Market of Bursa Malaysia, is involved in the businesses of fertilizers, heavy equipment, and equipment rental.

Based on the latest consolidated audited financial statement of HIB as at Aug 31, 2021, HIB recorded a profit after taxation of RM1.92 million and net assets of RM79.87 million.

Shares of Chin Hin closed 1.01% or four sen higher to RM4 on Tuesday, giving the company a market capitalisation of RM7.08 billion.