Chin Hin completes 12.27% stake buy in Ajiya for RM54.2 mil

• Chin Hin acquired the 37.38 million shares in a direct business transaction at RM1.45 apiece on Wednesday from major shareholder Yeo Ann Seck.

KUALA LUMPUR (April 24): Chin Hin Group Bhd (KL:CHINHIN) completed its purchase of an additional 12.27% stake in Ajiya Bhd (KL:AJIYA) for RM54.2 million, raising its stake in the building materials maker to 66.36%.

According to a bourse filing on Thursday, Chin Hin acquired the 37.38 million shares in a direct business transaction at RM1.45 apiece on Wednesday from major shareholder Yeo Ann Seck.

The share purchase raised Chin Hin’s stake in Ajiya to 66.36%. Yeo no longer holds any shares in the company.

The deal was planned via a share sale agreement inked between Chin Hin and Yeo back in January. According to Chin Hin, it was to allow the group to further consolidate its interest in Ajiya.

Then, the transaction was targeted for completion by the third quarter of 2025.

Chin Hin emerged as Ajiya’s single largest shareholder back in March 2022. At the time, it bought a 24.68% stake in the company at RM1.45 per share, or a total RM104.4 million.

Later, in September 2023, after its stake in Ajiya reached 34.1%, Chin Hin launched a mandatory general offer (MGO) for the remaining shares it did own in Ajiya at RM1.53 per share. At the MGO’s conclusion, its stake stood at 55.85%.

In May 2024, Ajiya agreed to extend a loan of RM250 million to Chin Hin with an annual interest rate of 7.5%, to be drawn down over 24 months.

Chin Hin plans to use the funds to grow its construction and building materials business. Out of the RM250 million, approximately RM110 million has been earmarked for acquiring two companies in the construction sector.

Chin Hin’s major shareholders, namely Chiau Haw Choon and his father Datuk Seri Chiau Beng Teik, both served in executive roles, namely the managing director and non-independent executive chairman respectively, in Ajiya.

Shares in Chin Hin closed one sen or 0.49% lower at RM2.04, giving the group a market capitalisation of RM7.22 billion.

Ajiya shares ended unchanged at RM1.65, valuing the company at RM502.56 million.

Want to have a more personalised and easier house hunting experience? Get the EdgeProp Malaysia App now.