Chang said the RM74 million cash proceeds will provide the group with more substantial financial flexibility to accelerate its property development plans.
KUALA LUMPUR: Chin Hin Group Property Bhd (CHGP), a leading Malaysian property developer, has entered into a share sale agreement with N&K Resources (M) Sdn Bhd for the disposal of four subsidiaries involved in the group’s commercial vehicles and bodyworks segment for RM74 million.
The four subsidiaries – Boon Koon Vehicles Industries Sdn Bhd, BKCV Sdn Bhd, Boon Koon Fleet Management Sdn Bhd and BK Fleet Management Sdn Bhd, collectively undertake CHGP’s commercial vehicles and bodyworks operations.
Upon completion of the transaction, CHGP will fully exit this segment, and the financial results of the four companies will be de-consolidated from the group’s accounts.
The disposal is expected to generate a divestment gain of approximately RM862,000.
CHGP group CEO for property development division Chang Tze Yoong said the RM74 million cash proceeds will provide the group with more substantial financial flexibility to accelerate its property development plans.
“These funds will be deployed not only for strategic landbank acquisitions in high-growth locations such as Klang Valley, but also to support ongoing projects and other growth opportunities.
“At the same time, this transaction will strengthen our cash position, improve liquidity, and enhance the overall financial resilience of the group,” he said in a statement.
The commercial vehicles division is a legacy business that predates the entry of CHGP’s current substantial shareholder in 2017.
It does not form part of the Chin Hin Group ecosystem, which is anchored around building materials, construction engineering, property development and home & living solutions.
This divestment removes a non-core, non-strategic segment, allowing CHGP to sharpen its operational focus.
With the disposal, CHGP will concentrate exclusively on residential property development, focusing on delivering high-quality housing that meets market needs.
This strategic shift aligns with the group’s long-term vision of delivering sustainable value through projects in prime locations, supported by prudent financial management and strong governance practices.