Malaysia's Chin Hin to buy into 3 solar firms

Malaysian building materials distributor Chin Hin Group Bhd (KLSE:CHINHIN) has agreed to buy 45% stakes in three solar firms at home, seeking to enhance its presence in the solar sector.

Under a memorandum of understanding (MoU), Chin Hin will acquire interests in Atlantic Blue Sdn Bhd and its associates Powertrack Sdn Bhd and Solarvest Energy Sdn Bhd. The value of the acquisition is estimated at MYR 24.75 million (USD 5.8m/EUR 5.1m) and will be paid in cash, the buyer said in a bourse statement on Monday.

Atlantic Blue is engaged in solar investment and installation, as well as electricity retail and property investment holdings. Associate Powertrack and Solarvest, in which Atlantic owns 40% stakes, are involved in the engineering, procurement and construction of solar plants.

The transaction is seen to strengthen Chin Hin’s solar business and expand its footprint to tropical countries and support its revenues. The Malaysian firm explained that the price tag for the deal is based on the unaudited profit of the target entities for the fiscal year through March 2017 and profit guarantees of up to MYR 10 million for the fiscal years ending March 2018 and March 2019.

(MYR 1.0 = USD 0.233/EUR 0.205)

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