Kuala Lumpur (April 1): Texchem Resources Bhd is venturing into the procurement and marketing of marine products such as soft shell crabs, prawns and hamaguri, the common orient clams, in Myanmar.
In a filing with Bursa Malaysia today, Texchem said its unit Texchem Food Sdn Bhd has inked a joint venture agreement (JVA) with E-Sprint Co Ltd and Mascot Industries Co Ltd to implement an investment plan through Texchem Marine Labutta Ltd for the said purpose.
Texchem Marine Labutta is a private company with a principal activity of processing and marketing of marine products like the ones mentioned above.
E-Sprint and Mascot are both private companies incorporated in Myanmar. E-Sprint is an investment holding company while Mascot is engaged in the business of production and exportation of frozen and dried seafood, such as prawns, soft shell crabs, spanner crabs, squids and fishes.
Upon signing of the JVA, Texchem said the issued and paid-up share capital of Texchem Marine Labutta will be increased to 2 billion kyats, comprising 20,000 shares.
Texchem Food will hold a 65% stake in Texchem Marine Labutta and E-Sprint will control 30%, while Mascot will have 5% in the company.
The group said the investment in Texchem Marine Labutta will be satisfied in cash and financed by Texchem Food’s internally generated funds.
The announcement today came after Texchem announced yesterday that it was teaming up with Japanese-based Kokubu Group Corp, which is involved in the wholesale, food manufacturing and import/export business, to venture into food logistics.
Shares in Texchem slipped two sen or 1.16% to close at RM1.70 today, for a market capitalisation of RM207.37 million.
Source: The edge markets
