PETALING JAYA: Chin Hin Group Property Bhd has proposed to buy a 45% stake in Aima Construction Sdn Bhd for RM31.5 million via a conditional share sale agreement with Uniplaza Sdn Bhd which will be fully satisfied via an allotment and issuance of up to 35.8 million new ordinary shares in Chin Hin at an issue price of 88 sen per share.
Aima is principally engaged in the business of construction, contractors, subcontractors, with a total order book value of RM320 million.
Chin Hin executive director Chiau Haw Choon said the proposed acquisition will allow the group to have indirect access to the on-going and future projects of Aima.
“In addition, it will accelerate Chin Hin’s expansion plan without an initial cash outlay as the purchase consideration will be fully satisfied via allotment and issuance of consideration shares. Ultimately, our goal is to transform the group into a major property and construction player – therefore this corporate exercise fits into our strategy perfectly.”
He added that Aima will also be able to tap into Chin Hin’s network in the property and construction industry to boost its construction order book.
Aima managing director Khor Ken Yeon said synergistic benefits are expected to arise as both Chin Hin and Aima are operating in and servicing the same industry.
“Especially in regard to Chin Hin’s plans to launch RM3.73 billion worth of projects in the coming years, we can expect to see significant participation from our end as construction work for properties has been our forte for several decades,” he added.
The proposed acquisition is expected to be completed by the third quarter.
To recap, Chin Hin had on Feb 8 announced plans spend RM268 million to acquire 81.9 acres of land in the Klang Valley to develop five different property projects, aiming to generate RM3.73 billion in gross development value (GDV) from on-going and future developments in the next two years.
It has two ongoing projects – Aera Residence and 8th & Stellar. Aera Residence is a serviced apartment project in Petaling Jaya with an estimated GDV of RM332 million.
Meanwhile, 8th & Stellar is a two-tower mixed-use development comprising serviced apartments, duplex lofts, office space and shoplots on a 2.2-acre leasehold tract in Sri Petaling. Its estimated GDV is RM470 million. The take-up rate for both projects currently stand at 98% and 69% respectively.
Source: The Sun Daily
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