KUALA LUMPUR (June 17): Chin Hin Group Bhd (KL:CHINHIN) has called off its planned acquisition of data centre-related firms after the target companies failed to secure an order book of at least RM380 million, a key condition for completion.
According to an exchange filing, the share sale agreement has been revoked as both the vendors and promoters were unable to fulfil the required conditions.
The acquisition, announced in August 2024, involved the purchase of a 65% stake in CSS Engineering & Construction Sdn Bhd (CEC) and Critical System Specialist Sdn Bhd (CSS) for RM51.51 million via a combination of cash and shares. CEC specialises in engineering and construction, while CSS focuses on facilities and project management.
The deal was structured with RM26.51 million in cash and 7.91 million Chin Hin shares valued at RM3.16 each, totalling RM25 million. The consideration share price would have been at a significant premium, considering Chin Hin’s recent weak share performance, which saw a sharp decline in late September last year.
Chin Hin shares closed up one sen or 0.5% at RM2.12 on Tuesday, valuing the building materials firm at RM7.51 billion. Year to date, the stock has fallen 10.9%.