MAIN Board-listed developer Chin Hin Group Property Bhd (CHGP) has sealed a share sale agreement (SSA) with N&K Resources (M) Sdn Bhd for the disposal of four subsidiaries involved in the group’s commercial vehicles and bodyworks segment for RM74 mil cash.
The four subsidiaries – Boon Koon Vehicles Industries Sdn Bhd, BKCV Sdn Bhd, Boon Koon Fleet Management Sdn Bhd and BK Fleet Management Sdn Bhd – collectively undertake CHGP’s commercial vehicles and bodyworks operations.
Upon completion of the transaction, CHGP will fully exit this segment with financial results of the four companies to be de-consolidated from the group’s accounts.
The disposal is expected to generate a divestment gain of approximately RM862,000.
The commercial vehicles division is a legacy business that predates the entry of CHGP’s current substantial shareholder in 2017.
It does not form part of the Chin Hin Group ecosystem which is anchored around building materials, construction engineering, property development and home & living solutions.
As such, the divestment exercise removes a non-core, non-strategic segment, hence allowing CHGP to sharpen its operational focus.
“The RM74 mil cash proceeds will provide us with stronger financial flexibility to accelerate our property development plan,” commented at CHGP’s group CEO (Property Development Division) Chang Tze Yoong.
“These funds will be deployed not only for strategic landbank acquisitions in high-growth locations such as Klang Valley but also to support our on-going projects and other growth opportunities.”
Added Chang: “At the same time, this transaction will strengthen our cash position, improve liquidity and enhance the overall financial resilience of the group.”
With the disposal, CHGP will focus exclusively on residential property development by delivering high-quality housing that meets market needs.
This strategic shift aligns with the group’s long-term vision of delivering sustainable value through projects in prime locations, supported by prudent financial management and strong governance practices.
At the close of today’s market trading, CHGP was down 2 sen or 1.85% to RM1.06 with 48,600 shares traded, thus valuing the company at RM1.4 bil. – Aug 14, 2025
