KUALA LUMPUR (Feb 16): Chin Hin Group Property Bhd (CHGP) has proposed to acquire a 60% stake or 15 million shares in Asia Baru Construction Sdn Bhd for RM30 million cash, to diversify into water infrastructure construction works.

In a filing, CHGP said its subsidiary Chin Hin Construction Sdn Bhd (CHCSB) inked a conditional share sale agreement with a number of Asia Baru Construction shareholders on Wednesday.

The group said the acquisition, which is expected to be completed by the second quarter of 2022, will enable it to diversify and tap into the water infrastructure construction works, which it noted are complementary to its existing property development business and CHCSB's construction business.

Asia Baru Construction is mainly involved in the construction of water supply related works as the main contractor, according to CHGP.

CHGP said that the proposed acquisition will also allow the group to have indirect access to the ongoing and future projects of Asia Baru Construction.

"[Asia Baru Construction] is currently undertaking approximately RM385.49 million worth of projects with an expected completion period [from] May 2022 up and until May 2024.

"The proposed acquisition will allow CHGP group to be involved in the water infrastructure business, where the group will be able to build its own in-house construction development board Grade G7 contractor and provide services in relation to turnkey water related works, such as dams, water treatment plant, reservoir and pipeline, which are expected to benefit CHGP in the long run," it added.

Shares of CHGP closed one sen or 1.17% higher at 86.5 sen on Wednesday, valuing the group at RM381.6 million.