Chin Hin Group Property Bhd (CHGP) is disposing of its entire stake in four subsidiaries involved in the commercial vehicle and vehicle bodyworks business for RM62 million in cash, as part of its strategy to focus on property development.
In a filing with Bursa Malaysia, the group said it had entered into a share sale agreement with HSG Sdn Bhd to sell its interests in Boon Koon Vehicles Industries Sdn Bhd, BKCV Sdn Bhd, Boon Koon Fleet Management Sdn Bhd and BK Fleet Management Sdn Bhd.
HSG is a holding company jointly owned by four brothers, namely Datuk Seri Teoh Hai Hin, Teoh Hai Peng, Datuk Teoh Hai Bim and Teoh Hai Seng, with each holding an equal 25% stake.
Following the completion of the proposed disposals, CHGP will fully exit the commercial vehicle and bodyworks business, allowing the group to concentrate its resources on its property development operations.
The four subsidiaries have been facing financial challenges, collectively recording an unaudited loss after tax of RM4.2 million for the eight months ended Aug 31, 2026. The proposed disposals are also expected to result in an estimated loss before tax of RM4.6 million.
However, CHGP does not expect the exit from these businesses to have an adverse impact on its overall financial performance.
The RM62 million consideration was determined based on the subsidiaries’ adjusted unaudited net asset value of RM2 million as at June 30, 2026, together with an agreed value of RM60 million for five properties located in Nibong Tebal, Seberang Perai Selatan, Penang.
Of the total proceeds, approximately RM55.7 million will be used for working capital requirements, mainly to support the group’s ongoing property development projects.
This includes RM35.7 million allocated for the Divine KLCC development and RM20 million for the Ophira project.
A further RM6.2 million will be used to settle intercompany balances, while RM100,000 will cover expenses related to the proposed disposals.
The group expects the transactions to be completed by the fourth quarter of 2026. The move is expected to streamline its business operations and redirect financial resources towards its core property development activities.
CHGP shares closed unchanged at 98 sen on Wednesday, giving the group a market capitalisation of approximately RM1.36 billion.
