Chin Hin Group Property explains terms of RM62 million vehicle business sale
The company said the proposed transaction includes debt settlement and cash extraction arrangements that were absent from an earlier aborted deal.
Chin Hin Group Property Bhd said its proposed RM62 million cash sale of four subsidiaries involved in commercial vehicles and bodyworks differs in structure and terms from a previous deal that fell through. The company provided the explanation in response to queries from Bursa Malaysia Securities.
Under the latest proposal, shareholder loans, borrowings from banks and balances between companies are to be settled before completion. Cash holdings and equivalents are also to be extracted beforehand, the group said. Those arrangements were absent from the earlier transaction.
The new sale to HSG Sdn Bhd was announced on Sept 30. Chin Hin Group Property said the consideration reflected RM2 million in adjusted unaudited net assets as at June 30, alongside an agreed RM60 million value for five properties in Seberang Perai Selatan, Penang.
The properties account for most of the sale price. According to the group, Henry Butcher Malaysia Sdn Bhd valued them at RM60 million on Sept 15. They belong to Boon Koon Vehicles Industries Sdn Bhd and include factory, office and warehouse buildings on freehold land.
The earlier proposal, announced in August 2025, involved selling the same businesses to N&K Resources (M) Sdn Bhd for RM74 million. That transaction was cancelled after the buyer could not obtain financing.
Chin Hin Group Property said it did not anticipate a material adverse effect on future financial performance from disposing of the loss-making subsidiaries. Their combined FY2025 revenue was RM81.63 million, representing 8% of group revenue of RM976.75 million.
