Chin Hin to acquire 45% stake in Atlantic Blue for RM24.75m

PETALING JAYA: Building materials and services provider Chin Hin Group Bhd plans to acquire a 45% stake in Atlantic Blue Sdn Bhd for RM24.75 million.

The group announced in a filing with Bursa Malaysia, it has entered into a share sale agreement(SSA) with Tan Chyi Boon, Lim Chin Siu, Tan Paw Boon and Chong Chun Shiong to acquire 450,000 ordinary shares equivalent to 45% of Atlantic Blue's share capital.

Following the acquisition, Atlantic Blue which is principally involved in installation of equipment for generation of electricity by way of solar power energy, sale of electricity through solar generation and investment holdings, will become an associate company of Chin Hin.

The share purchase will be funded by internally generated funds.

According to Chin Hin's board, the proposed acquisition will enable it to enhance its involvement in the solar power investment business as well as to diversify its customer base into that of Atlantic Blue's. This will also grant Chin Hin the opportunity to expand its solar power investment business regionally to tropical countries.

"The proposed acquisition is expected to be earnings accretive and will contribute positively to the long-term future earnings and earnings per share of Chin Hin Group," the board added.

Chin Hin's share price was up 1.54% to RM1.32, with some 655,500 shares changing hands.