Chin Hin unit to dispose of properties for RM21.12 mln

Last update: 06/06/2018

KUALA LUMPUR, June 6 (Bernama) -- Chin Hin Group Bhd's wholly-owned subsidiary, PP Chin Hin Sdn Bhd, is disposing of its properties to Chin Hin Building Materials Supply (JB) Sdn Bhd for RM21.15 million to focus its resources on its core business.

In a filing to Bursa Malaysia, the integrated builders conglomerate said the proposed disposal would provide an avenue for the group to realise its investment in those non-core assets at its market value and raise cash proceeds which could be channelled towards the group's business operations.

The said properties comprise units of shop offices in Rawang, Selangor and Alor Setar, Kedah.

"The properties are not used for any of the group's business operations and are non-core assets of the group and the disposal will also reduce the administrative time and effort to monitor the said properties," it said.

It also said that it would enable the group to partly repay its bank borrowings, which would reduce the group's gearing level and improve its ability to borrow further should new investment opportunities arise as well as improve the group's cash flow position due to the lower interest expense.

It said the disposal would not have a significant effect on the existing operations of the group and adverse impact on the group's earnings and working capital.