Chin Hin Group Berhad (KLSE:CHINHIN) made an offer to acquire 54.34% stake in Ajiya Berhad (KLSE:AJIYA) for approximately MYR 250 million on September 22, 2023. Chin Hin Group remaining Ajiya Shares not already owned by Chin Hin (?Ajiya Offer Share(s)?) at a cash offer price of MYR 1.53 per Ajiya Share (?Proposed Ajiya Offer?). Upon completion of the proposed Ajiya acquisition and assuming full acceptance of the proposed Ajiya Offer (excluding the Ajiya Undertakings), Chin Hin will be required to pay a total cash consideration of up to MYR 245.22 million for up to 160,274,887 Ajiya Offer Shares (?Ajiya Offer Cash Consideration?).

In a related transaction, Chin Hin Group Berhad 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. The Ajiya Proposals will be funded via a combination of internally generated funds and borrowings. The Proposed Ajiya Offer is conditional upon Chin Hin and its PACs holding in aggregate more than 50% of the voting shares in Ajiya.

The transaction is subject to approval of shareholders and/or directors of Chin Hin. The transaction is expected to close by 1st half of 2024. AmInvestment Bank Berhad and Strategic Capital Advisory Sdn Bhd acted as financial advisors to Chin Hin.

BDO Capital Consultants Sdn Bhd acted as financial advisor to Ajiya.