KUALA LUMPUR (March 18): Chin Hin Group Bhd has emerged as the single largest shareholder of building materials manufacturer Ajiya Bhd with a 24.68% equity interest.

In a statement on Friday (March 18), the company said it is acquiring the stake for RM104.4 million, adding that this synergistic acquisition would help the group expand its product range from building materials into high value-added safety glass products, metal roofing, metal door and window frames.

This is also Chin Hin’s biggest acquisition since its listing on the Main Market in 2016.

Chin Hin said it had entered into a conditional share sale agreement on Friday (March 18) with Ajiya’s major shareholder and Avia Kapital Sdn Bhd to acquire 72 million shares in Ajiya.

It said upon completion of the share sale, Datuk Chan Wah Kiang will be re-designated as the founder and group chief executive officer of Ajiya.

Commenting on the exercise, Chin Hin Group managing director Chiau Haw Choon said the group will be able to tap Ajiya’s order book and network of supply chain and clientele, which was built over its three decades of existence.

“The acquisition is in line with the group’s objective of acquiring strategic stakes in companies with potential for future growth. Synergistic benefits are expected to arise from the acquisition as both the group and Ajiya Group are operating in and servicing the same industry, namely the construction and property development industry.

“In addition, Ajiya Group also has an overseas presence in countries such as Thailand. Chin Hin may be able to leverage on the overseas network for future expansion abroad,” said Chiau.

Meanwhile Chan, who is also a managing director at Ajiya, said the company would benefit significantly from Chin Hin’s exposure in the property development business. In addition, given Chin Hin’s involvement in the building materials segment, both parties would be able to jointly work on streamlining costs and optimising order delivery flow.

At the midday break Friday, Chin Hin added one sen to RM2.66 while Ajiya shed 0.5 sen to RM1.20.