Chin Hin Group Property sells commercial vehicle units for RM62 million to focus on Divine KLCC and Ophira

Chin Hin Group Property Bhd is exiting the commercial vehicles and bodyworks business by selling four subsidiaries to HSG Sdn Bhd for RM62 million cash. Most of the proceeds will fund its Divine KLCC and Ophira property projects in Kuala Lumpur.

PETALING JAYA (Oct 1) — Chin Hin Group Property Bhd (CHGP) plans to exit its commercial vehicles and bodyworks business through the disposal of four wholly owned subsidiaries for RM62 million in cash, with most of the proceeds earmarked for its Divine KLCC and Ophira property projects.

In a Bursa Malaysia filing on Wednesday (Sept 30), the group said it had entered into a share sale agreement with HSG Sdn Bhd to dispose of its entire equity interests in Boon Koon Vehicles Industries Sdn Bhd (BKVI), BKCV Sdn Bhd, Boon Koon Fleet Management Sdn Bhd and BK Fleet Management Sdn Bhd. The transaction also includes BKVI’s wholly owned subsidiary, BKGM Industries Sdn Bhd, which manufactures vehicle bodies, trailers and semi-trailers.

CHGP expects the proposed disposals to result in a loss before tax of about RM7.6 million. Completion is expected in the fourth quarter of 2026, barring unforeseen circumstances. The group said the exercise would enable it to focus on its core property development business, realise the value of its investments, streamline operations and enhance financial flexibility.

Of the RM62 million disposal consideration, RM55.7 million is earmarked for working capital to fund ongoing property development costs, comprising RM35.7 million for Divine KLCC and RM20 million for Ophira. These funds are expected to be used within one year of completion. Another RM6.2 million will be allocated to repayment of intercompany balances upon completion, while RM100,000 is set aside for estimated disposal expenses.

According to CHGP, the target companies collectively recorded an unaudited loss after tax of RM4.2 million for the financial period ended Aug 31, 2026. The group nevertheless said it did not expect the disposals to have a material adverse impact on its overall financial performance going forward. The consideration was negotiated on a willing buyer, willing seller basis, taking into account the target companies’ adjusted unaudited net asset value of RM2 million as at June 30, 2026, and agreed values totalling RM60 million for five properties in Penang.

The properties are in Mukim 9, Seberang Perai Selatan, with the postal address of 1177 Jalan Dato Keramat, Nibong Tebal. They are held under GM975 Lot 1804, GM454 Lot 1808, GM455 Lot 1809, GM456 Lot 1810 and GM1696 Lot 5025. Under the agreement, HSG is required to pay a 10% deposit of RM6.2 million upon signing and the RM55.8 million balance within three months of the agreement date. An automatic two-month extension is available, subject to late-payment interest of 8% a year on the outstanding balance, calculated on a daily-rest basis.

HSG is a holding company owned equally by Datuk Seri Teoh Hai Hin, Teoh Hai Peng, Datuk Teoh Hai Bim and Teoh Hai Seng. The proposed disposals do not require approval from CHGP shareholders or relevant government authorities.