KUALA LUMPUR: Chin Hin Group Bhd
has emerged as the one largest shareholder in Ajiya Bhd following the acquisition of 72 million or about 24.68% fairness curiosity in the constructing supplies producer for a complete consideration of RM104.4mil.
In a bourse submitting, the development and property group mentioned 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 mentioned 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 practisable date of RM1.1776.
As at 12.30pm, shares in Ajiya, which have been listed on the Main Market of Bursa Malaysia since 2003, have been final traded at RM1.20 a share, 5 sen or 4% decrease than its earlier closing value, for a market capitalisation of about RM350.1mil.
According to the submitting, Chin Hin will buy your entire 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.
Under the phrases of the deal, Chan can even resign as managing director of Ajiya and function its group CEO for two years.
Chin Hin mentioned the acquisition represents a chance to develop its product vary whereas leveraging the synergistic advantages from each firms working inside the identical building and property improvement trade.
“In addition, Ajiya Group additionally has an abroad presence in Thailand. The group could possibly leverage on such abroad community for future growth overseas,” it mentioned.
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 attributable to lifting of lockdowns as the development web site progress began to catch up, effecting improve in demand for their merchandise,” mentioned the assertion.
Before the noon break, Chin Hin’s inventory final traded up one sen or 0.38% at RM2.66 apiece.
