Texchem Resources Bhd's (TRB) wholly-owned subsidiary Texchem Food Sdn Bhd has entered into a joint-venture agreement with Myanmar-based Mascot Industries Co Ltd to manufacture and market surimi, fishmeal, seafood sticks and aqua culture products in Myanmar.
Texchem Food, an investment holding company, will own 4,431,600 shares or a 90% stake in A.S.K Andaman Ltd, the proposed joint-venture company, while Mascot will own the balance 482,400 shares.
TRB's total capital and investment outlay for this joint venture will be US$4,341,600 and US$6,238,220 respectively, to be financed through internally generated funds and/or borrowings.
TRB expects the proposed venture to reduce its earnings for the year ending Dec 31, 2003, by 2.4 sen per share.
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