PETALING JAYA: ETA Group Bhd has entered into a share sale agreement with VIP Bonanza Sdn Bhd to dispose of stakes in two subsidiaries for RM22.73mil cash.
The transaction involves the sale of a 38% equity interest in PT Rex Canning for RM14mil and the disposal of a 100% equity interest in Rex Foods Sdn Bhd for RM8.68mil.
Following the completion, ETA will retain a 62% stake in PT Rex, while Rex Foods will cease to be part of the group.
PT Rex, incorporated in Indonesia, is engaged in canned food manufacturing and exports. It recorded revenue of IDR476.26bil and profit after tax of IDR9.45bil in the 18‑month financial period ended December 2025, with net assets of IDR151.46bil. Rex Foods, incorporated in Malaysia, is dormant, with net assets of RM8.68mil.
In a filing with Bursa Malaysia, ETA Group noted the disposal is expected to result in a pro forma loss of RM100,000, mainly due to transaction expenses.
ETA’s net assets per share will decline marginally from 15 sen to 14 sen, while earnings per share will reduce from 0.79 sen to 0.62 sen. Gearing remains unchanged at 0.12 times.
Proceeds from the disposal will be channeled primarily into working capital for ETA’s property and construction business, which has become the group’s strategic focus since ETA Industries Sdn Bhd emerged as the major shareholder in 2025.
The funds will support ongoing construction contracts worth RM79.86mil and strengthen liquidity for property development and supply of construction materials.
The disposal reflects ETA’s strategy to reduce reliance on its volatile food and beverage segment, monetise non‑core assets, and rebalance earnings towards property and construction, with completion targeted by the final quarter of 2026.
