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Chin Hin Group Proposes To Sell Its 19.34% Stake In Solarvest To Divine Inventions For RM103.28 Million

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Chin Hin Group Bhd proposes to sell its 19.34% stake in Solarvest Holdings Bhd, which represents 129.1million shares, for RM103.28 million. This will be paid to Divine Inventions Sdn Bhd.

Pixon

Chin Hin stated in a Bursa Malaysia filing that RM102.72mil would be used to repay the bank loans of the group and its subsidiaries. These amounts were approximately RM790.89mil at December 31, 2021.

Chin Hin said, “The proposed disposal provides an avenue for the group to monetise its investment in Solarvest. The group will be able to utilise the disposal consideration of RM103.28mil largely to repay its bank borrowings, which will reduce the group’s gearing level and improve its financial position with the enhancement of its current ratio; and improve its cash flow due to the lower interest expense.”

Chin Hin stated that the proposal would also allow the group to record a proforma gain in excess of RM35.68mil. This may vary depending upon the carrying value of the shares of Solarvest at completion.

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According to the group, the exercise should be completed in the second half of this year.

Through its subsidiaries, Solarvest is involved in engineering, procurement, construction, and commissioning services, with the operation and maintenance of solar PV systems. It also owns a photovoltaic (PV) plant.

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