Oriental Interest Berhad has proposed acquisition of the entire equity interest in Chin Hin (Jitra) Sendirian Berhad and CHJ Motor Holdings Sdn Bhd for a total purchase consideration of RM280 million.
The group said the proposed acquisitions will provide additional income streams, broaden its earnings base and enhance its existing business segments.
Following which Oriental Interest plans to scale the business, deepen its market presence and pursue further opportunities in the financing industry. It also does not discount further acquisitions to position the financing business as a meaningful contributor to the Group’s recurring income and long term growth.
CHJSB, incorporated in 1971, provides motor vehicle hire purchase financing and money lending services. CMHSB is the retail arm, holding eleven subsidiaries engaged in the retail of motorcycles and spare parts, repairs and insurance agency services.
Both Target Companies’ financial performance grew in the financial year ended 31 August 2025 (“FY2025”). Aggregate revenue rose 5.1% to RM263.82 million in FY2025 from RM250.91 million in FY2024, while aggregate profit after taxation (“PAT”) rose 79.6% to RM19.35 million from RM10.78 million in the previous year.
For the six months ended 28 February 2026, aggregate revenue rose 4.1% to RM134.65 million from RM129.39 million a year earlier, and aggregate PAT rose 38.6% to RM16.17 million from RM11.66 million. The half year PAT already represents 83.6% of the PAT recorded for the whole of the preceding financial year.
The purchase consideration will be satisfied entirely in securities, with no cash outlay required from OIB on completion of the Proposed Acquisitions. RM100 million will be settled through the issuance of 76,923,077 new ordinary shares at RM1.30 each, and the balance of RM180 million through the issuance of 180,000,000 redeemable non-convertible preference shares (“RPS”) at RM1.00 each. The RPS carry a tenure of seven years and a cumulative coupon of 4.0% per annum.
Settling the consideration via securities rather than cash allows the Group to retain its cash resources for its operational requirements, ongoing property development projects and future initiatives. The issuance of RPS as part of the settlement also moderates the immediate dilution to existing shareholders relative to a settlement made entirely in ordinary shares.
A conditional share sale and purchase agreement was entered into with LLSB 1980 Holdings Sdn Bhd, the vendor of both Target Companies. LLSB 1980 Holdings Sdn Bhd is also a substantial shareholder of OIB, with a direct interest of 5.08%, and forms part of the same ownership group as OIB’s controlling shareholder, LK Labuan Foundation (“Foundation”), which holds an aggregate indirect interest of 66.24% in the Group.
