Chin Hin Group Bhd will emerge as the single largest shareholder in Ajiya Berhad having acquired 24.68% equity stake for RM104.4 million in the building materials manufacturer. As mentioned in a statement from the conglomerate, this acquisition will allow it to expand its product range from building materials into high value-added safety glass products, metal roofing, metal door and window frames.
Managing Director Chiau Haw Choon commented on the occasion, saying that the group will be able to tap into Ajiya's order book and network of supply chain and clientele, accumulated throughout its three decade-long existence.
“The acquisition is in line with the group’s objective of acquiring strategic stakes in companies with potential for future growth. Synergistic benefits are expected to arise from the acquisition as both the group and Ajiya Group are operating in and servicing the same industry, namely the construction and property development industry.
“In addition, Ajiya Group also has an overseas presence in countries such as Thailand. Chin Hin may be able to leverage on the overseas network for future expansion abroad,” added Chiau.
Datuk Chan Wah Kiang, also a managing director at Ajiya, also mentioned how beneficial Chin Hin's exposure in the property development industry is, with both parties being able to work on streamlining costs and optimising order delivery flow jointly.
"The property development and construction sectors in Malaysia have shown meaningful signs of recovery, with promising growth prospects ahead. Coupled with the low-interest rate level for residential and commercial unit purchases, Ajiya is likely to benefit from the higher demand for building materials, namely metal and safety glass products”
Chan will also be re-designated from his current position to Ajiya's founder and Group Chief Executive Officer following the completion of the share sale.
"On the other hand, the Malaysian government's renewed interest in affordable houses is also expected to drive more job flow for Ajiya Green Integrated Building System (AGiBS), which is our very-own Industrialised Building System (IBS) solution," Chan continued.