Chin Hin to acquire 45% stake in three solar power firms

PETALING JAYA: Building materials manufacturer Chin Hin Group Bhd is planning to acquire a 45% equity stake in three solar power-related entities, as it eyes further expansion in its solar power investment business.

In a filing with Bursa Malaysia, Chin Hin announced that it had signed a memorandum of understanding (MoU) with Atlantic Blue Sdn Bhd, Powertrack Sdn Bhd and Solarvest Energy Sdn Bhd to acquire a 45% stake in each of the solar power players for a total of RM24.75mil.

The equity interest purchase will be satisfied via cash upon the completion of the required due diligence within 60 days of the date of the MoU.

Chin Hin said the proposed move was to boost its involvement in the solar power investment business, moving forward.

“The proposed acquisition is intended to enhance and further strengthen Chin Hin’s involvement in the solar power investment business, and grant it the opportunities to expand its solar power investment business regionally to tropical countries.

“In addition, such significant stakeholding in the three companies will allow Chin Hin to enjoy the profits derived from the solar power players and it bodes well with Chin Hin’s commitment to its corporate social responsibilities by utilising and partaking in business involving renewable energy,” said Chin Hin in the filing.

Atlantic Blue is principally involved in the installation of equipment for the generation of electricity by way of solar power energy, and the sale of electricity through solar generation and property investment holdings.

On the other hand, Powertrack and Solarvest Energy focus mainly on the engineering, procurement and construction of the solar energy business.

The building materials manufacturer noted that the price tag of RM24.75mil was based on the unaudited profit after taxation of the three companies for the financial year ending March 31, 2017 (FY17) and profit guarantees on their profit after taxation up to the sum of RM10mil for FY18 and FY19 to be provided by the vendors.

Both Powertrack and Solarvest Energy are associate companies of Atlantic Blue, in which the latter holds a 40% stake in each of the solar power companies.

The shareholders of Atlantic Blue are Tan Chyi Boon, Lim Chin Su and Tan Paw Boon, who control equity interests of 35%, 35% and 30%, respectively.