Texchem unit in Myanmar marine product venture

  • Business
  • Saturday, 02 Apr 2016

PETALING JAYA: Texchem Resources Bhd’s (TRB) unit Texchem Food Sdn Bhd is venturing into the procurement and marketing of marine products such as soft shell crab, prawns and hamaguri, also known as the common orient clam, in Myanmar.

This comes after TRB announced that its wholly-owned unit Texchem Restaurant Systems Sdn Bhd had inked a joint venture (JV) agreement with Japanese firm Kokubu Group Corp to form a JV firm, Kokubu Food Logistics Malaysia Sdn Bhd, to venture into food logistics, inventory management, handling of sales orders and warehouse operations.

In a filing with the stock exchange, TRB said Texchem Food has inked a JV agreement with E-Sprint Co Ltd and Mascot Industries Co Ltd to set up an investment plan through Texchem Marine Labutta Ltd (TMLL) for the venture.

TMLL is a private company in Myanmar involved in processing and marketing of marine products such as soft shell crab, prawns and hamaguri, while E-Sprint, an investment holding firm was established in Brunei.

Engaged in the production and export of frozen and dried seafood including prawns, soft shell crabs, spanner crabs, fishes and squids, Mascot was set up in Myanmar.

TRB said that upon signing of the JV, the issued and paid-up capital of TMLL would be increased to 2 billion kyats (RM6.46mil), comprising 20,000 ordinary shares at 100,000 kyats each.

This is to be paid by the parties on a progressive basis or may be determined by the TMLL directors, it said.

Texchem Food will hold 65% stake in TMLL, while E-Sprint with 30% interest, followed by Mascot 5%.

While the JV is not expected to have any material impact on TRB’s consolidated net assets per share and gearing, the investment in TMLL would be fulfilled via cash and financed by Texchem Food’s internally generated funds.

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