KUALA LUMPUR (July 27): Property developer Oriental Interest Bhd (KL:OIB) has proposed a RM280 million share-based acquisition from a company linked to its controlling shareholder, LK Labuan Foundation Sdn Bhd, to enter the motorcycle financing and retail business.
In a Bursa Malaysia filing on Monday, the company said it has signed a conditional share agreement with LLSB 1980 Holdings Sdn Bhd to acquire 100% of Chin Hin (Jitra) Sdn Bhd (CHJSB) and CHJ Motor Holdings Sdn Bhd (CMHSB) which will be fully paid through the issuance of 76.92 million new shares at RM1.30 each and 180 million redeemable non-convertible preference shares (RPS) at RM1 each.
The purchase consideration was arrived at on a willing-buyer-willing-seller basis. An independent valuation by Strategic Capital Advisory Sdn Bhd estimated the value of CHJSB at between RM191.79 million and RM239.88 million as of July 1, 2026.
The valuation of CMHSB was estimated at between RM42.51 million and RM57.89 million as of the same date.
LK Labuan Foundation owns a 66.24% interest in OIB through its interests in LLSB and LKFO Sdn Bhd. LLSB directly owns a 5.08% interest in OIB. LKFO owns a 57.81% direct interest in OIB.
The acquisitions will cut LKFO’s stake to 51.37% and increase LLSB’s interest to 15.65%, raising LK Labuan Foundation’s stake in OIB to 70%.
Chin Hin Jitra operates a motorcycle hire purchase and money lending business, while CHJ Motor owns a group of companies involved in motorcycle sales, spare parts distribution, repair services, and insurance agency activities, according to the filing.
The group said the two companies reported a combined revenue of RM263.82 million and net profit of RM19.35 million for the financial year ended Aug 31, 2025, compared with RM250.91 million and RM10.78 million respectively a year earlier.
For the six months ended Feb 28, 2026, the businesses recorded a combined revenue of RM134.65 million, while net profit rose to RM16.17 million from RM11.66 million in the corresponding period.
Oriental Interest, which intends to amend its constitution to enable the issuance of the RPS, said issuing shares and preference shares instead of using cash would allow it to retain funds for its existing operations and development projects, while reducing the need for additional borrowings.
In a press statement, Oriental Interest said the proposed acquisitions will provide the group with additional income streams and expand its earnings base.
“Building on this platform, the group intends to scale the business, deepen its market presence and pursue further opportunities in the financing industry. Further acquisitions could accelerate growth by adding scale, expanding the customer base, broadening the group’s geographic reach and introducing new financing products and capabilities,” said Oriental Interest.
The deal requires approval from non-interested shareholders via an extraordinary general meeting. OIB’s executive director and chief executive officer Khoh Why Way, Low Kok Shen, Low Kok Yu and Low Chee Peng are all interested directors in the deal.
MainStreet Advisers Sdn Bhd has been appointed as the independent adviser to assess whether the transaction is fair and reasonable to minority shareholders.
The group said the proposed acquisition is expected to be completed by the fourth quarter of this year.
In a separate filing, OIB said its net profit for the third quarter ended May 31, 2026 fell 31% to RM25.6 million, while revenue dropped 41% to RM179.4 million due to lower progress billings from its property development business.
The company said it has RM628.71 million in unbilled property sales as at end-May and 1,996 acres of land for future development, providing long-term earnings visibility.
For the nine-month period, net profit declined 21% to RM81.6 million, while revenue fell nearly 20% to RM501.1 million.
Shares of Oriental Interest were unchanged at RM1.31 at Monday’s market close, valuing the group at RM803.9 million.