Oriental Interest calls off RM280m motorcycle business acquisitions, refocuses on property

Oriental Interest Bhd (OIB) and vendor LLSB 1980 Holdings have mutually terminated the RM280 million deal to buy two motorcycle financing and retail firms. The developer will instead concentrate on its core property and construction segments, supported by RM635.2 million in unbilled sales and a 2,01

PETALING JAYA (Oct 29) — Oriental Interest Bhd (OIB) and its vendor have mutually agreed to terminate the property developer’s proposed RM280 million acquisition of two motorcycle financing and retail businesses, following a reassessment of its strategy and the time and resources needed to complete the deal.

In a Bursa Malaysia filing on Wednesday (Oct 28), the company said it and vendor LLSB 1980 Holdings Sdn Bhd had mutually agreed on Oct 28 to terminate the conditional share sale and purchase agreement. The decision followed a review of OIB’s business strategies, diversification considerations and the proposed acquisitions’ alignment with its overall business objectives. It also took into account the longer-than-anticipated timeframe and additional resources required to fulfil the relevant regulatory, approval and procedural requirements.

First announced on July 27, the proposed related-party transaction involved the acquisition of the entire equity interests in Chin Hin (Jitra) Sdn Bhd and CHJ Motor Holdings Sdn Bhd. OIB had proposed settling the consideration through the issuance of RM100 million in new ordinary shares and RM180 million in redeemable non-convertible preference shares. The constitutional amendments were intended to facilitate the preference share issuance. On Sept 22, the company submitted a letter to Bursa Malaysia Securities to withdraw its listing application and draft shareholder circular to facilitate essential updates to the documents.

OIB said neither party would have any claims against the other arising from or in connection with the agreement. Its board also resolved not to proceed with the proposed amendments to the company’s constitution.

The group said it remains focused on growing its core property development and general construction businesses, supported by about RM635.2 million in unbilled property sales and a landbank of approximately 2,013 acres as at Aug 31, 2026. In a separate statement on Wednesday, OIB said its unbilled property sales rose 22% from RM520.4 million a year earlier, providing what it described as earnings visibility for the coming years. During the fourth quarter ended Aug 31, 2026, the group completed and delivered vacant possession of 960 units across various developments. It also launched new phases at SP Saujana Permai, Serai Residensi and Taman Dahlia, alongside a new project, Myra Embun. The group said it continues to evaluate and pursue landbank opportunities, particularly in areas with strong demand from first-time homebuyers and owner-occupiers.

Separately, OIB’s unaudited results showed that net profit attributable to shareholders fell 35.9% to RM25.16 million in the fourth quarter from RM39.26 million a year earlier. Revenue declined 20% to RM179.40 million from RM224.27 million. For the full financial year ended Aug 31, 2026, net profit attributable to shareholders fell 21.1% to RM96.80 million from RM122.75 million, while revenue declined 20% to RM680.52 million from RM850.55 million. OIB attributed the lower revenue and pre-tax profit for both periods mainly to lower progress billings from its property development segment. The group said it remains cautiously optimistic about delivering another year of positive performance in FY2027.