KUALA LUMPUR, July 31 (Bernama) -- Chin Hin Group Bhd is disposing its entire equity interest in Metex Steel Sdn Bhd comprising 50 million ordinary shares to EC Excel Wire Sdn Bhd for RM70 million cash.
In a filing with Bursa Malaysia today, Chin Hin said that upon completion of the proposed disposal, Metex Steel will cease to be its wholly-owned subsidiary.
“The proposed disposal provides an opportunity for the company to unlock and monetise its investment in Metex Steel.
“The proposed disposal is intended to streamline and reorganise the business activities of the company and is expected to improve its cash flows,” Chin Hin said.
According to the filing, the proposed disposal will result in a gain of approximately RM6.1 million to the Group, taking into consideration the net asset of RM63.9 million as at March 31, 2025.
“The proceeds from the proposed disposal will be utilised to support the Group’s working capital requirements, finance its business expansion initiatives, and for other business activities that are anticipated to be more promising.
“The actual breakdown of these expenses and the timeframe for full utilisation of the proceeds cannot be determined at this juncture, as it will depend on the actual requirements of the company at the relevant time,” it added.
The proposed disposal is expected to be completed by the fourth quarter of 2025.
-- BERNAMA
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