KUALA LUMPUR (Aug 2): Chin Hin Group Bhd was slapped with an unusual market activity (UMA) query by Bursa Malaysia on Tuesday (Aug 2) due to a sharp rise in its share price.

The building material distributor’s share price hit a record high on Monday at RM5.11, following 11 consecutive days of trading gains. Monday’s close was 62.74% higher than July 15’s close at RM3.14.

However, at the noon break on Tuesday, the counter was among the local bourse’s top losers, after falling 21 sen or 4.11% to RM4.90. At RM4.90, the group was valued at RM4.34 billion.

Bursa requested that Chin Hin disclose any corporate developments, rumours or reports concerning the business and affairs of the group, and any other possible reasons, which may account for the UMA.

Additionally, the bourse regulator also asked whether the group is in compliance with the Bursa Securities Listing Requirements (LRs), in particularly Paragraph 9.03 of the Bursa Securities LRs on immediate disclosure obligations.

It was previously reported that Chin Hin is slated to hold an extraordinary general meeting on Thursday over the proposed sale of its 19.34% stake in Solarvest Holdings Bhd, as well as a one-for-one bonus issue.

The group on May 17 proposed to dispose of the 19.34% stake or 129.1 million shares in Solarvest to Divine Inventions Sdn Bhd — an entity owned by Chin Hin’s major shareholder, the Chiau family — for RM103.28 million or 80 sen per share, which would result in a one-off disposal gain of RM35.68 million. Divine Inventions owns a 36.6% stake in Chin Hin.

Chin Hin expects its bank borrowings to be reduced to RM688.17 million following the disposal, from RM790.89 million as at end-2021.