Chin Hin To Exit Commercial Vehicle Business With RM74 Million Disposal
Chin Hin Group Property Berhad announced that it has entered into a Share Sale Agreement with N&K Resources (M) Sdn Bhd for the disposal of four subsidiaries involved in the Group’s commercial vehicles and bodyworks segment, for a total cash consideration of RM74 million.
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, and the financial results of the four companies will 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. This divestment removes a non-core, non-strategic segment, allowing CHGP to sharpen its operational focus.
“The RM74 million cash proceeds will provide us with stronger financial flexibility to accelerate our property development plans. These funds will be deployed not only for strategic landbank acquisitions in high-growth locations such as Klang Valley, but also to support ongoing projects and other growth opportunities. At the same time, this transaction will strengthen our cash position, improve liquidity, and enhance the overall financial resilience of the Group,” said Chang Tze Yoong, Group Chief Executive Officer of the Property Development Division at CHGP.
