PETALING JAYA: Rex Industry Bhd
is proposing to dispose of two of its profit-generating units, Rex Canning Co Sdn Bhd and Rex Trading Sdn Bhd, in a related party transaction to its group managing director and executive director Darmendran Kunaretnam for RM40mil.
The company said in its filing with Bursa Malaysia that it had appointed SCS Global Advisory (M) Sdn Bhd as an independent adviser for non-interested directors and non-interested shareholders on the proposed deal.
Rex said the disposal consideration is to be satisfied entirely in cash and upon the completion of this proposed disposal, both units will cease to be wholly-owned subsidiaries of Rex.
An application will be submitted by ETA Industries Sdn Bhd, which is the new major shareholder of Rex pursuant to a takeover offer, to the Securities Commission for approval, according to the company.
