CHINHIN 5273 CHIN HIN GROUP BERHAD plans to exit SLVEST 0215 SOLARVEST HOLDINGS BERHAD

 CHINHIN 5273 CHIN HIN GROUP BERHAD plans to exit  SLVEST 0215 SOLARVEST HOLDINGS BERHAD

PETALING JAYA: Chin Hin Group Bhd has proposed to dispose of its entire 19.34% stake, representing 129.1 million shares, in Solarvest Holdings Bhd for RM103.28mil to Divine Inventions Sdn Bhd.

The construction and property development company said the disposal consideration shall be satisfied wholly by way of cash.

In a filing with Bursa Malaysia, Chin Hin said RM102.72mil of the proceeds would be utilised to repay bank borrowings of the group and its subsidiaries, which amounted to about RM790.89mil as at Dec 31, 2021.

“The proposed disposal provides an avenue for the group to monetise its investment in Solarvest,” Chin Hin said.

Chin Hin logo copyChin Hin logo copy

“The group will be able to utilise the disposal consideration of RM103.28mil largely to repay its bank borrowings, which will reduce the group’s gearing level and improve its financial position with the enhancement of its current ratio; and improve its cash flow due to the lower interest expense.”

Chin Hin said the proposal would also enable the group to record a one-off proforma gain of RM35.68mil, which may vary depending on the carrying value of Solarvest shares at the time of completion of the disposal.

The group said the exercise was expected to be completed by the second half of this year.

Solarvest, through its subsidiaries, is principally involved in the provision of engineering, procurement, construction and commissioning services as well as operations and maintenance of solar photovoltaics (PV) systems. It also owns a solar PV plant.

https://www.thestar.com.my/business/business-news/2022/05/18/chin-hin-plans-to-exit-solarvest