Chin Hin's unit acquires performance concrete assets

PETALING JAYA: Chin Hin Group Bhd's indirectly owned subsidiary Diva Victory Sdn Bhd, which is venturing into high and ultra-high performance concrete, is planning to acquire assets related to the same from FRUHPC Concept Sdn Bhd for RM3 million in cash.

Chin Hin's board of directors said in a Bursa Malaysia filing, Diva Victory and FRUHPC Concept had on October 12 entered into a Assets Purchase Agreement in relation to the purchase of assets related to the manufacturing of the high and ultra-high performance concrete.

"Pursuant to the shareholders agreement dated Sept 25, 2017 entered between Starken AAC Sdn Bhd (Starken), the holding company of DVSB and Chan Wai Heng (CWH), the purchase consideration shall be satisfied by way of cash, which will be funded from the subscription consideration received by DVSB. On 11 October 2017, DVSB had increased its issued share capital from RM2 to RM3 million upon received the subscription consideration of totaling RM3 million from Starken and CWH respectively," Chin Hin's board of directors said on the purchase consideration.

Besides acquiring the tools and equipments required for the development and manufacturing of architectural high and ultra-high performance products, the proposed acquisition will also enable the group to expand its product portfolio.

The proposed acquisition which is expected to be completed by the fourth quarter of this year, is set to contribute positively to the group's future earnings and net assets. Chin Hin's shares gained 1.56% to close at RM1.30, with some 208,200 shares changing hands.