KEDAH: Property developer Oriental Interest Bhd is expanding its business portfolio by acquiring Chin Hin (Jitra) Sdn Bhd and CHJ Motor Holdings Sdn Bhd for RM280 million.
The acquisitions will provide the group with additional income streams, broaden its earnings base and enhance its existing business segments.
The acquisition will also establish a new platform for future growth, particularly in the financing industry, which is supported by consistent demand for accessible credit among consumers and small businesses that may be underserved by conventional financial institutions.
Building on this platform, Oriental Interest 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.
This is expected to position the financing business as a meaningful contributor to the group’s recurring income and long-term growth.
Operating principally in Kedah, Chin Hin and CHJ Motor Holdings provide an integrated range of motorcycle-related services spanning retail sales, financing, after-sales servicing and spare parts distribution.
CHJ Motor Holdings, incorporated in 1971, provides motor vehicle hire purchase financing and money lending services.
Chin Hin is the retail arm, holding eleven subsidiaries engaged in the retail of motorcycles and spare parts, repairs and insurance agency services.
Both companies’ financial performance grew in the financial year ended Aug 31, 2025 (FY25).
Aggregate revenue rose 5.1% to RM263.82 million in FY25 from RM250.91 million in FY24, while aggregate profit after taxation (PAT) rose 79.6% to RM19.35 million from RM10.78 million in the previous year.
For the six months ended Feb 28, 2026, aggregate revenue rose 4.1% to RM134.65 million from RM129.39 million a year earlier, and aggregate PAT rose 38.6% to RM16.17 million from RM11.66 million.
The half-year PAT already represents 83.6% of the PAT recorded for the whole of the preceding financial year.
The purchase amount will be satisfied entirely in securities, with no cash outlay required from OIB on completion of the acquisitions.
RM100 million will be settled through the issuance of 76,923,077 shares at RM1.30 each, and the balance of RM180 million through the issuance of 180,000,000 redeemable non-convertible preference shares (RPS) at RM1.00 each.
The RPS carry a tenure of seven years and a cumulative coupon of 4.0% per annum.
Settling the consideration via securities rather than cash allows Oriental Interest to retain its cash resources for its operational requirements, ongoing property development projects and future initiatives.
The issuance of RPS as part of the settlement also moderates the immediate dilution to existing shareholders relative to a settlement made entirely in ordinary shares.
A conditional share sale and purchase agreement was entered into with LLSB 1980 Holdings Sdn Bhd, the vendor of Chin Hin and CHJ Motor Holdings.
LLSB 1980 is also a substantial shareholder of Oriental Interest, with a direct interest of 5.08%, and forms part of the same ownership group as Oriental Interest’s controlling shareholder, LK Labuan Foundation, which holds an aggregate indirect interest of 66.24% in the group.
LK Labuan Foundation carries forward a business legacy established in 1955 by the late Low Kan Soon and Lee Leong Kee.
With the involvement of three generations of the family, LK Labuan Foundation manages a diversified portfolio of businesses across property development, food and agriculture, construction materials, manufacturing, automotive distribution and retail.
The acquisitions are accordingly a related party transaction and require the approval of non-interested shareholders at an extraordinary general meeting to be convened.
Subject to the approval of Oriental Interest’s non-interested shareholders and the fulfilment of all relevant conditions precedent, the acquisitions are expected to be completed by Q4 of 2026.
