Chin Hin initiates MGO after raising stake in Ajiya

Chin Hin Group Bhd is set to acquire a 2.11% stake in Ajiya Bhd for RM9.51 million in cash, equivalent to RM1.53 per share. 

This acquisition has arisen from conditional share sale agreements with How Lian Yeong and Ong Hang Ping.

As of September 11, Chin Hin and its affiliated entities collectively hold 94.4 million ordinary shares in Ajiya, representing a 32% equity interest. 

Following the completion of the acquisition, their combined ownership in Ajiya will increase to 34.1%.

As a result of this increase, Chin Hin is obliged to make a conditional mandatory general offer (MGO) for all remaining Ajiya shares not currently in their possession, offering RM1.53 per Ajiya share in cash. 

The execution of this offer will take place once the Ajiya share sale agreements become unconditional.

Chin Hin’s intention is to maintain Ajiya’s listing on the Main Market of Bursa Securities after the proposed offer. 

The acquisition aligns with Chin Hin’s strategic vision of expanding its product portfolio in the building materials sector and providing a more comprehensive range of products in property and home living solutions.
In April 2022, Chin Hin initially acquired a 24.41% stake in Ajiya, a company known for manufacturing high-value safety glasses, metal roofing, metal doors, and window products.

Following this initial acquisition, Chin Hin expanded its building materials division by incorporating Ajiya’s product offerings. 

This expansion has not only broadened Chin Hin’s customer base and distribution network but has also integrated Ajiya products into its construction and property divisions. This strategic move has enabled Chin Hin to leverage Ajiya’s order book, client base, and an extensive supply chain network primarily based in Malaysia. –TMR