Chin Hin Group Property Bhd, a Bursa Main Market listed company primarily involved in property development, announced the expansion of its construction business today through the proposed acquisition of 60% equity interest in Makna Setia Sdn Bhd by its 65%-owned subsidiary, Kayangan Kemas Sdn Bhd for RM9 million in cash
In a filing with Bursa Malaysia, the Company said Kayangan Kemas has entered into a conditional share sale agreement with Liew Jor Ho, Chai Yan Min and Yap Seng Hee for the stake-sell of 25.5%, 25.5% and 9% respectively in Makna Setia. Barring any unforeseen circumstances, the Proposed Acquisition is expected to be completed by the first quarter of 2022.
Makna Setia is a Grade 7 contractor registered with Construction Industry Development Board. The company is mainly involved in the construction of public infrastructure, which includes bridges, railway tracks and highways. Some of its prominent projects include Mass Rapid Transit (MRT) Package V210, Pan Borneo Highway, West Coast Expressway (WCE), SUKE Highway, Kajang 2 – Jalan Reko Flyover, Bandar Utama Elevated Bridge and Sunway Serene Scenic Lake Bridge.
Currently, Makna Setia is undertaking approximately RM335.6 million worth of projects with an expected completion period between January 2022 up to and until July 2023.
For the financial year ended 31 December 2020, Makna Setia registered revenue of RM55.7 million with a profit after tax of RM5.1 million.
Commenting on the latest acquisition, CHGP Executive Director Mr Chiau Haw Choon said: “The Proposed Acquisition will enable CHGP to diversify and tap into the infrastructure construction industry, which is complementary to CHGP’s existing property development business and Kayangan Kemas Sdn Bhd’s construction business.
The Proposed Acquisition will not only enable CHGP to have indirect access to the ongoing and future projects of Makna Setia but also expand to a wider scope within the construction industry which includes public infrastructure development such as bridges, railway tracks and highways.”
He added that moving forward, the Company will be able to strengthen its own in-house construction team and aim for infrastructure projects in the country, which shall expand its expertise beyond building houses.
The Proposed Acquisition shall also add to the existing order book of Kayangan Kemas that is worth RM1 billion. With clients ranging from private property owners or property developers to various government ministries, it has ongoing projects that are mainly in the construction and upgrading of hospitals. The company also constructs community halls and an administrative complex for Kuala Lumpur City Hall.
