KUALA LUMPUR (Sept 22): Chin Hin Group Bhd said it will be making a mandatory general offer (MGO) for the remaining shares in Ajiya Bhd at RM1.53 per share, but intends to maintain Ajiya's listing status.

This comes after the building material specialist on Friday entered into share sale agreements with How Lian Yeong and Ong Hang Ping for the proposed acquisition of a 2.11% stake or 6.22 million shares in Ajiya for RM9.51 million or RM1.53 per share.

The proposed acquisition will raise its aggregate shareholdings in the safety glass and metal products manufacturer to 34.1% from 32%, added Chin Hin in a filing with Bursa Malaysia.

“Accordingly, pursuant to Section 218(2) of the Capital Markets and Services Act, 2007 and Paragraph 4.01(a) of the Rules on Take-overs, Mergers and Compulsory Acquisitions, the company will be obliged to extend a conditional MGO for all the remaining Ajiya shares not already owned by Chin Hin,” said Chin Hin.

The group said that following the MGO, it intends to maintain the listing status of Ajiya on the Main Market of Bursa Securities.

It added that the stake acquisition and the MGO are subject to the approval of Chin Hin's shareholders at an extraordinary general meeting to be convened later.

Chin Hin also said that following the initial acquisition of Ajiya, Chin Hin had been able to expand the product ranges of its building materials division from drymix, ready mix concrete as well as mesh and steel bars to include the product offerings of Ajiya.

“In addition, Chin Hin is also able to tap into Ajiya’s orderbook and client base as well as an extensive network of supply chain comprising factories, warehouses and offices located predominantly in Malaysia. This had augured well for Chin Hin Group as it had enabled the group to broaden its customer base, distribution network as well as allowing Chin Hin to incorporate and integrate Ajiya products within Chin Hin’s construction and property divisions.

“Such integration and synergies between the Ajiya Group and Chin Hin continues to bolster Chin Hin’s efforts to be one of the few companies in the industry to have a unique business model of providing end-to-end solutions, from upstream activities (building materials manufacturing, construction and engineering) to downstream businesses (property development and home and living solutions),” it added.

Shares in Chin Hin ended unchanged at RM4.07, valuing the group at RM7.2 billion. Ajiya finished two sen or 1.32% higher at RM1.54, giving it a market capitalization of RM469.06 million.