Chin Hin sells 17 shop office units

PETALING JAYA: Chin Hin Group Bhd’s wholly owned subsidiary PP Chin Hin Sdn Bhd will be disposing of 17 shop office units to Chin Hin Building Materials Supply (JB) Sdn Bhd for RM21.15 million.
Chin Hin said in a filing with Bursa Malaysia, that the disposal includes five units of triple-storey shop office in Rawang, Selangor, three triple-storey shop office units in Taman Gunung Indah, Alor Star, and nine triple-storey shop house units in Taman Bandar Baru Mergong, Alor Star.
“The said properties are shop offices which are not used for any of the group’s business operations and are non-core assets of the group. The proposed disposal provides an avenue for the group to realise its investment in these non-core assets at their market value; and raise cash proceeds which can be channelled towards the group’s business operations,” its board of directors said.
Chin Hin also plans to use a bulk of the proceeds from the disposal to repay bank borrowings, which in turn will reduce its gearing level, improve its ability to borrow further should new investment opportunities arise and improve its cash flow position due to the lower interest expense.
The remainder will also be used as working capital and to foot estimated expenses from the proposed disposal.
Datuk Sri Chiau Beng Teik and Chiau Haw Choon are common directors of PP Chin Hin and Chin Hin Building Materials Supply.