KUALA LUMPUR: Chin Hin Group Property Bhd has proposed to acquire 60% equity interest in Makna Setia Sdn Bhd for RM9mil cash.

       In a statement Friday, Chin Hin said the acquisition would be done by its 65%-owned subsidiary, Kayangan Kemas Sdn Bhd.

       Chin Hin executive director Chiau Haw Choon said the proposed acquisition would enable the group to diversify and tap into the infrastructure construction industry, complementing its existing property development business and Kayangan Kemas’ construction business.

       “The proposed acquisition will not only enable Chin Hin to have an indirect access to the on-going and future projects of Makna Setia, but also expand to a wider scope within the construction industry which includes public infrastructure development such as bridges, railway tracks and highways,” he said.

       He added that moving forward, the company would be able to strengthen its own in-house construction team and aim for infrastructure projects in the country, which shall expand its expertise beyond building houses.

       Kayangan Kemas has entered into a conditional share sale agreement (SSA) with Liew Jor Ho, Chai Yan Min and Yap Seng Hee (vendors) for the stake sale of 25.5%, 25.5% and 9% respectively in Makna Setia.

       Barring any unforeseen circumstances, the proposed acquisition is expected to be completed by the first quarter of 2022.

       Makna Setia is a Grade 7 contractor registered with the Construction Industry Development Board. It is mainly involved in the construction of public infrastructure, which includes bridges, railway tracks and highways.

       Currently, Makna Setia is undertaking approximately RM335.6mil worth of projects with expected completion period between January 2022 up and until July 2023.

       For the financial year ended Dec 31, 2020, Makna Setia registered a revenue of RM55.7mil with a net profit of RM5.1mil.