Chin Hin sells loss-making unit for RM10.97m

PETALING JAYA: Chin Hin Group Bhd is disposing of its loss-making indirect wholly owned subsidiary Formino Metal Sdn Bhd (FMSB) for RM10.97 million.
Chin Hin said FMSB's holding companies Metex Steel Sdn Bhd and Frontscape Sdn Bhd have entered into a share sale agreement dated March 30, 2018 for the disposal.
It noted that the proposed disposal will not result in a gain to the group after taking into consideration the unaudited net book value of the investment in FMSB of RM10.97 million as at December 31, 2017.
FMSB manufactures and supplies metal roof and structural steel system.
Chin Hin said the proposed disposal is undertaken for the purpose of reducing the cost associated in maintaining the loss-making subsidiary and thereby improving the balance sheet of the group.
"The proposed disposal will enable Chin Hin group to channel the group's resources into other business activities that are anticipated to be more promising."
Proceeds from the proposed disposal are intended for general corporate purposes and repayment of existing debt.
At 4pm, Chin Hin's share price was unchanged at RM1.10 on some 377,000 shares traded.