Chin Hin Group Property to sell vehicle subsidiaries for RM62 million
The group plans to use RM55.7 million of the proceeds for working capital, mainly property development costs.
Chin Hin Group Property Bhd (CHGP) has agreed to dispose of four loss-making subsidiaries to HSG Sdn Bhd for RM62 million in cash. The company said the sale would end its involvement in commercial vehicles and bodyworks, allowing it to concentrate on property development.
According to its bourse filing, the agreement covers CHGP's entire equity holdings in Boon Koon Vehicles Industries Sdn Bhd, BKCV Sdn Bhd, Boon Koon Fleet Management Sdn Bhd and BK Fleet Management Sdn Bhd. Completion is expected by the fourth quarter of 2026.
CHGP said the subsidiaries posted a combined unaudited after-tax loss of RM4.2 million over eight months to Aug 31, 2026. It expects a pre-tax disposal loss of about RM4.6 million, but does not anticipate an adverse impact on its financial performance.
The price reflects an adjusted unaudited net asset value of RM2 million for the companies at June 30, 2026, plus RM60 million in agreed valuations for five properties in Nibong Tebal.
Of the RM55.7 million working capital allocation, CHGP has earmarked RM35.7 million for Divine KLCC and RM20 million for Ophira. It also plans to use RM6.2 million to repay intercompany balances and RM100,000 to cover disposal expenses.
HSG is a holding company in which four brothers each own 25%: Datuk Seri Teoh Hai Hin, Teoh Hai Peng, Datuk Teoh Hai Bim and Teoh Hai Seng.
