KUALA LUMPUR: Chin Hin Group Bhd has emerged as a significant shareholder in Ajiya Bhd
following the acquisition of 72 million or about 24.68% fairness curiosity within the firm for a complete consideration of RM104.4mil.
In a bourse submitting, the development and property group stated it had penned a conditional share sale settlement with Ajiya’s current largest shareholder and managing director Datuk Chan Wah Kiang and Avia Kapital Sdn Bhd to amass the shares, that are valued at RM1.45 apiece.
It stated the acquisition value represents a 23.13% premium to the five-day quantity weighted common market value of Ajiya shares as much as the final practicable date of RM1.1776.
As at 12.30pm, shares in Ajiya, a buildings supplies producer listed on the Principal Market of Bursa Malaysia, had been final traded at RM1.20 a share, 5 sen or 4% decrease than its earlier closing value.
In accordance with the submitting, Chin Hin will buy the whole 20.76% direct stake owned by Chan in addition to 3.92% fairness curiosity from Avia Kapital.
Following the transaction, Chan will proceed to have a ten.62% oblique stake in Ajiya whereas Avia Kapital will personal a 6.7% share.
Underneath the phrases of the deal, Chan may even resign as managing director of Ajiya and function its group CEO for 2 years.
Chin Hin stated the acquisition represents a chance to broaden its product vary whereas leveraging the synergistic advantages from each firms working throughout the identical building and property improvement trade.
“As well as, Ajiya Group additionally has an abroad presence in Thailand. The group might be able to leverage on such abroad community for future growth overseas,” it stated.
In FY21, Ajiya recorded a revenue after tax (PAT) of RM18.97mil and income of RM268.51mil, as in comparison with PAT of RM397,000 and income of RM254.9mil in FY20.
“For the 12-month cumulative 30 November 2021, Ajiya Group recorded improve in income and revenue earlier than tax primarily as a result of lifting of lockdowns as the development web site progress began to catch up, effecting improve in demand for his or her merchandise,” stated the assertion.
Earlier than the noon break, Chin Hin’s inventory final traded up one sen or 0.38% at RM2.66 apiece.