Oriental Interest drops RM280m motorcycle deal
- Oriental Interest has called off its RM280m purchase of Chin Hin (Jitra) and CHJ Motor Holdings, a Kedah motorcycle dealer and lender.
- The seller, LLSB 1980 Holdings, belongs to the same group that controls 66.24% of OIB; the deal ended by agreement on 28 October 2026.
- Profit to shareholders for June to August 2026 fell 36% to RM25.2m on revenue down 20%.
- OIB has RM635.2m of sales still to bill and about 2,013 acres of land.
Why did Oriental Interest drop the Chin Hin (Jitra) deal?
It cited a rethink of strategy and diversification and the longer than expected time and resources needed for regulatory approvals.
How much was Oriental Interest paying for Chin Hin (Jitra)?
RM280 million for Chin Hin (Jitra) and CHJ Motor Holdings, in new shares and redeemable preference shares rather than cash.
How did Oriental Interest do in its fourth quarter?
Profit to shareholders for June to August 2026 fell 36% to RM25.2 million, and revenue fell 20% to RM179.4 million.
How much land does Oriental Interest have?
About 2,013 acres of development land at 31 August 2026.
Oriental Interest Bhd (OIB), a property developer and builder with its registered office in George Town, has called off its RM280 million purchase of motorcycle dealer and hire-purchase lender Chin Hin (Jitra) Sendirian Berhad and motorcycle retailer CHJ Motor Holdings Sdn Bhd. OIB and the seller, LLSB 1980 Holdings Sdn Bhd, agreed on 28 October 2026 to end the deal, with no claims on either side. The same day, OIB reported that profit for June to August 2026 fell 36%.
The deal that was dropped
- Announced: 27 July 2026. The RM280 million was to be paid in new OIB shares, 76.9 million at RM1.30 (RM100 million), and 180 million redeemable preference shares at RM1 (RM180 million). No cash
- The targets: Chin Hin (Jitra), in business since December 1971, sells motorcycles and spare parts, finances hire purchase and lends money in Kedah. CHJ Motor Holdings owns motorcycle shops in Kedah and Perlis
- Related party: the seller is ultimately owned by LK Labuan Foundation, which also holds 66.24% of OIB. OIB's chief executive Khoh Why Way and three other executive directors are among the foundation's beneficiaries
- Size: about 35% of OIB's market value of RM803.31 million, so it needed shareholders' approval
- Why it was dropped: a rethink of strategy and diversification, and the longer than expected time and extra resources needed for the regulatory approvals. OIB also dropped planned changes to its constitution
The results
| Jun–Aug 2026 | Jun–Aug 2025 | Change | |
|---|---|---|---|
| Revenue | RM179.4m | RM224.3m | −20% |
| Profit to shareholders | RM25.2m | RM39.3m | −36% |
For the full year to 31 August 2026, revenue fell 20% to RM680.5 million and profit to shareholders fell 21% to RM96.8 million.
The property side
- Sales to be billed: RM635.2 million at 31 August 2026, up 22% from RM520.4 million a year earlier
- Handovers and launches: 960 units handed over in the quarter; new phases at SP Saujana Permai, Serai Residensi and Taman Dahlia, and a new project, Myra Embun
- Land: about 2,013 acres of development land. OIB says it is looking for more, where first-time buyers and owner-occupiers want homes
- Latest land buy: in January its 70%-owned unit Myra Land agreed to buy about 2.97 million sq ft (68 acres) of leasehold land in Mukim Bukit Raja, Petaling, Selangor, from S.J. Properties for RM80.77 million, about RM27 psf (our calculation)
- Bursa Malaysia — Oriental Interest: termination of the proposed acquisitions (28 Oct 2026)
- Bursa Malaysia — Oriental Interest press release: calls off proposed acquisitions of motorcycle retail and financing businesses (28 Oct 2026)
- Bursa Malaysia — Oriental Interest results for the year ended 31 August 2026 (28 Oct 2026)
- Bursa Malaysia — Oriental Interest: proposed acquisition of Chin Hin (Jitra) and CHJ Motor Holdings (27 Jul 2026)
- Bursa Malaysia — Oriental Interest: Myra Land to buy leasehold land in Mukim Bukit Raja for RM80.77m (2 Jan 2026)
Facts summarised in our own words, with our own analysis added.
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