KUALA LUMPUR (July 3): Building materials distributor Chin Hin Group Bhd has proposed the acquisition of 45% stakes in three companies for RM24.8 million to boost its involvement in the solar power investment business.

In a filing with Bursa Malaysia, Chin Hin said the proposed acquisitions would also grant the group opportunities to expand its solar power investment business regionally to tropical countries.

The group today entered into a memorandum of understanding with the shareholders of the three companies — Atlantic Blue Sdn Bhd, Powertrack Sdn Bhd and Solarvest Energy Sdn Bhd — to undertake the acquisitions.

The shareholders include Tan Chyi Boon, Lim Chin Siu, Tan Paw Soon and Chong Chun Shiong.

Atlantic is principally involved in the installation of equipment for generation of electricity via solar power energy, the sale of electricity through solar generation and property investment holdings.

Powertrack and Solarvest are associate companies of Atlantic, and are principally involved in the engineering, procurement and construction of solar energy.

Chin Hin said the purchase consideration was arrived based on the unaudited profit after tax of the three companies for the financial year ending March 31, 2017 (FY17) and profit guarantees of up to RM10 million for FY18 and FY19 to be provided by the shareholders.

Chin Hin's share price closed unchanged at RM1.30 with about 120,300 shares traded.