Tuesday, 06 Aug 2024
PETALING JAYA: Chin Hin Group Bhd has acquired substantial stakes in two data centre specialist firms totalling RM51.5mil.
In a filing with Bursa Malaysia, the company said it had acquired 500,500 (65%) shares in Critical System Specialist Sdn Bhd for RM41.21mil and 195,000 shares (65%) in CSS Engineering and Construction Sdn Bhd for RM10.30mil.
Chin Hin said it had entered into a conditional share sale agreement with Liew Choon Fui, Teng Bee Ling and Ho John Chan for the acquisition of the stakes in the two companies.
“The target companies are data centre specialists providing solutions in data centre engineering and construction works.
“As such, the company believes that the proposed acquisitions will allow the company to expand its offerings, increase its revenue and earnings and grow additional income streams.”
Chin Hin added that the acquisitions are also expected to bring synergistic benefits, such as cross-selling among the enlarged customer base of the combined group and economies of scale in procurement.
“The proposed acquisitions will position Chin Hin as a leading player with distinct market advantages. We anticipate clear profit visibility, supported by RM388mil in CSS’ order book upon the completion of the transactions. With CSS’ 21 years of proven expertise in EPCC, we are well-prepared to capitalise on the booming growth in the data centre sector,” Chin Hin managing director Chiau Haw Choon said in a statement.
He noted that the proposed acquisitions also come complete with a cumulative profit guarantee amounting to RM12.39mil for 2023 and 2024, which will immediately boost profitability, strengthen financial performance, and deliver value to shareholders.
