Chin Hin Group Berhad (KLSE:CHINHIN) entered into a sale and purchase agreement to acquire 51.4% stake in Chin Hin Group Property Berhad (KLSE:CHGP) ('CHGP') from Divine Inventions Sdn. Bhd. ('Divine'), Datuk Seri Chiau and Chiau Haw Choon for MYR 79.5 million on December 28, 2020. As part of the agreement, Chin Hin will acquire 176.6 million shares at MYR 0.45 per share and 37.6 million warrants at MYR 0.25 per warrant. The consideration shall be satisfied wholly by way of cash. Divine will sell 116.6 million shares and 2.8 million warrants for MYR 53.17 million, Datuk Seri Chiau will sell 52.14 million shares and 34.77 million warrants for MYR 32.16 million and Chiau Haw Choon will sell 7.9 million shares for MYR 3.5 million. Sellers will exit the target through the deal and buyer will increase it's holding from 0% to 51.4% through the deal. In a related deal, Chin Hin proposes to undertake bonus issue of up to 278.19 million new ordinary shares in Chin Hin, on the basis of 1 bonus share for every 2 ordinary shares in Chin Hin. Consideration will be funded via a combination of internally generated funds, bank borrowings and fund-raising exercise, the proportions will be determined later after taking into consideration Chin Hin group's gearing level, interest costs and cash reserves. The proceeds raised from the proposed private placement will be utilized to partially finance the proposed acquisition. Chin Hin will be obliged to undertake a mandatory take-over offer for all the remaining Chin Hin Group Property shares and warrants not already owned by Chin Hin and parties acting in concert with it upon completion of the Proposed Acquisition. However, Chin Hin has obtained an exemption from mandatory offer obligation.

The acquisition is subject to clearance by Bursa Securities of the circular to shareholders to be issued by Chin Hin, approval by shareholders of Chin Hin, any other relevant authorities if required and satisfactory due diligence findings on CHGP by Chin Hin. Board and Audit Committee of Chin Hin is of the opinion that the acquisition is in the best interest of the Chin Hin. As of January 25, 2021, M&A Securities Sdn Bhd announced that the additional listing application for the Proposals has been submitted to Bursa Malaysia Securities Berhad. The acquisition is expected to be completed by the first quarter of year 2021. On May 24, 2021, companies agreed to extend the conditional period of the agreement to June 30, 2021. On June 16, 2021, SC approved the extension of time up to September 23, 2021. On June 28, 2021, M&A Securities wishes to announce that all the conditions precedents in the SPA have been fulfilled, and the SPA has become unconditional on June 28, 2021. On July 26, 2021, On behalf of the Board, M&A Securities wishes to announce that Chin Hin and the Vendors agreed to extend the Completion Period of the SPA to September 28, 2021. Upon completion of the proposed acquisition, Chin Hin will be able to consolidate the financial results of CHGP and the Group expects that it will contribute positively to the long-term future earnings and earnings per share of the Group. Strategic Capital Advisory Sdn. Bhd. and M&A Securities Sdn. Bhd. acted as a financial advisor to Chin Hin.