BUSINESS

TEXCHEM UNIT TO BUY ADDITIONAL 28 PCT STAKE IN SUSHI KING FOR RM102.20 MLN

19/01/2022 07:30 PM

KUALA LUMPUR, Jan 19 -- Texchem Resources Bhd’s (TRB) wholly-owned subsidiary, Sushi King Holdings Sdn Bhd (SKHSB), has entered into a Share Transfer Agreement with Asia Yoshinoya International Sdn Bhd to acquire 1.40 million ordinary shares representing a 28 per cent stake in Sushi King Sdn Bhd (Sushi King) for a total cash consideration of RM102.20 million.

In a filing with Bursa Malaysia, TRB said the proposed acquisition, which would increase SKHSB's stake in Sushi King to 98.35 per cent, is expected to be completed by the first half of 2022. 

The proposed acquisition would allow TRB and its subsidiaries (TRB Group) to enhance its assets and earnings base through the consolidation of the additional equity interest in Sushi King and to facilitate easier decision-making and control in the restaurant business operated under the restaurant division of the TRB Group.

“As Sushi King is already a 70.35 per cent indirect subsidiary of TRB, the proposed acquisition is not expected to result in the TRB Group being exposed to additional inherent risk from the restaurant business and/or food and beverage industry,” it said.

“The proposed acquisition will provide an opportunity for the group to increase revenue contribution from the restaurant division.

“In addition, Sushi King will be able to strengthen its decision-making processes, thus allowing greater flexibilities, ease and speed of decision-making for the company to plan its business strategies,” TRB said.

It added that the proposed acquisition is expected to contribute positively to the future earnings and earnings per share of the TRB Group. 

-- BERNAMA


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