Kuala lumpur: Chin Hin Group Bhd is disposing its entire equity interest in Metex Steel Sdn Bhd, comprising 50 million ordinary shares, to EC Excel Wire Sdn Bhd for RM70 million cash. In a filing with Bursa Malaysia today, Chin Hin said that upon completion of the proposed disposal, Metex Steel will cease to be its wholly-owned subsidiary.

According to BERNAMA News Agency, the proposed disposal provides an opportunity for the company to unlock and monetise its investment in Metex Steel. The move is intended to streamline and reorganise the business activities of the company and is expected to improve its cash flows.

The filing indicates that the proposed disposal will result in a gain of approximately RM6.1 million to the Group, taking into consideration the net asset of RM63.9 million as at March 31, 2025. The proceeds from the proposed disposal will be utilised to support the Group’s working capital requirements, finance its business expansion initiatives, and for other business activities that are anticipated to be more promising.

Chin Hin noted that the actual breakdown of these expenses and the timeframe for full utilisation of the proceeds cannot be determined at this juncture, as it will depend on the actual requirements of the company at the relevant time. The proposed disposal is expected to be completed by the fourth quarter of 2025.