Chin Hin Group Berhad entered into conditional share sale agreements to acquire additional 2.11% stake in Ajiya Berhad from How Lian Yeong and Ong Hang Ping for MYR 9.5 million.

Chin Hin Group Berhad (KLSE:CHINHIN) entered into conditional share sale agreements to acquire additional 2.11% stake in Ajiya Berhad (KLSE:AJIYA) from How Lian Yeong and Ong Hang Ping for MYR 9.5 million on September 22, 2023. As part of the agreement, Chin Hin will acquire 6,218,200 ordinary shares in Ajiya in total, representing approximately 2.11% equity interest in Ajiya for a total cash consideration of MYR 9,513,846 or MYR 1.53 per Ajiya Sale Share. The consideration shall be funded from Chin Hin's internally generated fund.

Upon completion of acquisition, the aggregate shareholdings of Chin Hin and its PACs in Ajiya will increase from approximately 32% to 34.1%. The transaction is subject to approval of shareholders and/or directors of Chin Hin, third party approvals and government or regulatory approvals. The Board of Chin Hin approved the acquisition.

The transaction is expected to close on November 22, 2023. AmInvestment Bank Berhad acted as financial advisor while Strategic Capital Advisory Sdn Bhd acted as independent advisor to Chin Hin.