KUALA LUMPUR: Chin Hin Group Bhd received acceptances for 12.31 million shares, or the equivalent of a 4.17 per cent stake, at the close of its mandatory takeover offer (MGO) for the remaining 65.9 per cent stake in Ajiya Bhd.
Its shareholding in Ajiya has increased to 54.33 per cent as a result, as per its stock exchange filing today.
Moreover, Chin Hin has been granted acceptances for 525,200 shares, or 0.18 percent, of the offer; these acceptances are contingent upon verification and will take place after the posting date and until the closing date.
With a 24.68 per cent stake in Ajiya as of March 2022, Chin Hin emerged as the company's largest shareholder.
The MGO, which was launched in September 2023, was prompted by Chin Hin's proposal to purchase a 2.11 percent stake in Ajiya at RM1.53 per share, increasing its shareholding from 32 percent to 34.1 per cent.
Chin Hin has said that it intends to maintain Ajiya's listing status.
The building material specialist's conditional MGO became unconditional on Dec 13, 2023, when its total shareholding, along with individuals working together, surpassed 50 per cent.
It was emphasised that the acquisition would allow it to expand its product line in the building materials division to include metal doors, window frames, roofing, and high-value safety glass products.
The MGO was deemed "not fair but reasonable" by independent adviser BDO Capital Consultants Sdn Bhd, but it was nevertheless recommended that Ajiya shareholders accept it.
Chin Hin's shares closed today at RM3.47, down 8 sen or 2.25 per cent, giving it a market capitalisation of RM6.14 billion.
Ajiya's stock closed at RM1.52, unchanged, signifying a RM461.46 million valuation for the company.