KUCHING: Shares in Kim Hin Industry Bhd surged to hit the limit up price of 76 sen yesterday, following news that its controlling shareholders are seeking to privatise the ceramic tile manufacturer at 85 sen per share in cash.
The price jump marked a 30 sen gain from its last traded price of 46 sen before a trading halt was triggered last Friday.
However, the counter still traded 9 sen below the offer price, with zero transactions recorded at or below 76 sen as of the midday break.
According to Bursa Malaysia, Kim Hin was restricted from direct business transactions (DBT) from 8:30am to 10:00am under Trading Rule 10.10(1).
Trading via DBT was only authorised from 10:00am onwards, using the volume-weighted average price (VWAP) from 9am to 10am for reference.
“There is no impact to normal market trading,” the exchange said.
At lunch break, buy orders for Kim Hin at the limit up price had queued up to over 45 million shares.
The privatisation offer was made by Kim Hin (Malaysia) Sdn Bhd (KHSB) and company chairman Chua Seng Huat.
KHSB is the private investment vehicle of the Chua family.
The joint offerors currently control 62.25 per cent of the company, or 140.24 million shares, excluding treasury stock.
They are seeking to acquire the remaining 52.94 million shares (37.75 per cent) they do not already own in a deal valued at approximately RM45 million.
The offer is unconditional and not subject to a minimum acceptance level.
Shareholders have 21 days from the date of the offer document to respond.
Should the offerors secure 90 per cent acceptances, they intend to invoke Section 222(1) of the Capital Markets and Services Act 2007 to compulsorily acquire the remaining shares.
In such a case, Bursa Malaysia will suspend the stock five market days after the offer closes, paving the way for delisting.
If they fail to reach the 90 per cent threshold, the offerors may revise the offer price—provided they do so at least two days before the closing date—and extend the offer period. Delisting remains their end goal.
In the first quarter ended March 31, 2025, Kim Hin posted a group revenue of RM58.35 million and a net loss of RM3.42 million.
The company held cash and bank balances of RM51.1 million, retained earnings of RM64.1 million, and a net asset per share of RM1.88.
Kim Hin has recorded losses for several years, largely due to a prolonged housing market slump in key operating regions, which has weakened demand for ceramic tiles.
The group manufactures tiles in Kuching and Seremban, and recently shut its Shanghai plant in favour of outsourcing.
In addition to Malaysia and China, Kim Hin operates in Australia and has a small presence in Vietnam.
