Chin Hin to invest in concrete technology development

PETALING JAYA: Building materials company Chin Hin Group Bhd proposes to acquire a 70% stake in Diva Victory Sdn Bhd for RM2.1 million, to participate in the development of new concrete technology.

The group told Bursa Malaysia, its wholly owned subsidiary Starken AAC Sdn Bhd has entered into a shareholders agreement with Chan Wai Heng for the shares subscription.

Diva Victory is currently engaged in the business of lease and sublease of land, but is expected to change its principal activity to research and development of products using high and ultra-high performance concrete with the exercise. Chan has been involved in the research for high and ultra-high performance concrete in the past three years.

Chin Hin will finance the deal via internally generated funds and external borrowings.

"The proposed subscription is part of Chin Hin's vertical integration strategy and it represents a gateway for Chin Hin to further increase its product portfolio which creates a synergy effect and is expecting to generate positive earnings to the group," it said, adding that the corporate exercise also represents the group's investment into the new concrete technology and the possible addition of new markets.

Chin Hin shares closed unchanged at RM1.31, with some 667,800 shares changing hands. It has a market capitalisation of RM711.2 million.