Oriental Interest To Acquire Chin Hin (Jitra), CHJ Motor For RM280 Mln

KUALA LUMPUR, July 27 (Bernama) -- Property developer Oriental Interest Bhd (OIB) has proposed to acquire the entire equity interest in Chin Hin (Jitra) Sdn Bhd (CHJSB) and CHJ Motor Holdings Sdn Bhd (CMHSB) for RM280 million. 

In a filing with Bursa Malaysia today, OIB said it had entered into a conditional share sale and purchase agreement with LLSB 1980 Holdings Sdn Bhd to acquire the two companies.

“The proposed acquisitions represent an opportunity for the group to expand its business portfolio by participating in new business segments which are expected to provide additional income streams and broaden the group’s earnings base.

“The proposed acquisitions are in line with the group’s objective and strategy to pursue sustainable growth through strategic investments and acquisitions that may enhance the group’s long-term prospects and create value for the shareholders of OIB,” it said. 

According to OIB, the proposed acquisition involves 30 million ordinary shares in CHJSB and six ordinary shares in CMHSB, representing a 100 per cent equity interest in each company.

The RM280 million purchase consideration will be settled through the issuance of 76.92 million new ordinary shares at an issue price of RM1.30 per share and 180 million new redeemable non-convertible preference shares at an issue price of RM1.00 each, it said.

OIB said that upon completion of the proposed acquisition, the Chin Hin (Jitra) and CHJ Motor Holdings will become wholly owned subsidiaries of the group.

“The proposed acquisitions are expected to contribute positively to the future earnings and financial performance of the group, while enabling the group to expand and diversify its product and service offerings as well as reduce its reliance on its existing business segments,” it said. 

Separately, OIB said the proposed acquisition constitutes a related party transaction and is subject to the approval of non-interested shareholders at an extraordinary general meeting.

It added that the proposed acquisition is expected to be completed by the fourth quarter of 2026, subject to the approval of non-interested shareholders and the fulfilment of all relevant conditions precedent.

--BERNAMA