KUALA LUMPUR (Jan 15): Chin Hin Group Property Bhd (KL:CHGP) has cancelled the RM74 million sale of its commercial vehicle and bodyworks businesses after the buyer failed to secure financing, delaying the group’s plan to fully focus on property development.
In a bourse filing on Thursday, the property developer said it had mutually agreed with the N&K Resources (M) Sdn Bhd to revoke and rescind the share sale agreement dated Aug 14, 2025 after N&K Resources was unsuccessful in obtaining bank financing of at least 70% of the disposal consideration within the extended deadline on Jan 14. N&K Resources is a real estate company owned by All Trade Resources (Malaysia) Sdn Bhd.
Chin Hin had planned to sell its entire equity interests in four subsidiaries — Boon Koon Vehicles Industries Sdn Bhd, BKCV Sdn Bhd, Boon Koon Fleet Management Sdn Bhd and BK Fleet Management Sdn Bhd.
Chin Hin Property said it will refund the RM7.4 million deposit paid by the purchaser, free of interest, and that both parties will have no further rights or obligations under the agreement.
The company said the rescission will not have any effect on its issued and paid-up share capital, nor any material impact on its net assets, gearing or earnings for the financial year ended Dec 31, 2025.
In August last year, Chin Hin said it would divest the four subsidiaries for RM74 million to enable the group to concentrate on residential property projects, strengthen its cash position and redeploy proceeds towards landbank acquisitions and ongoing developments.
The proposed disposals were expected to yield a pre-tax gain of RM2.4 million and were targeted for completion by the first quarter of 2026.
Shares in Chin Hin Property closed up one sen, or 0.85%, at RM1.18 on Thursday, valuing the group at about RM1.64 billion. Over the past one year, the counter has gained over 7%.