KUALA LUMPUR (Jan 26): Kawan Food Bhd, which sells frozen food products such as “Kawan Paratha” and “Kawan Chapatti”, is expanding its activities to include the food truck business.

In a filing with Bursa Malaysia this evening, the company said it is acquiring a 51% stake in Dikawani Foods Sdn Bhd, which is in the business of food trucks, from Gan Thiam Chai and Kwan Sok Kay for RM51.

Subsequent to the Acquisition, Dikawani becomes subsidiary of Kawan.

The  transaction is deemed a related party, as Gan is the chairman of Kawan Food and his wife Kwan is an executive director in the company. Gan is also the largest shareholder of Kawan Food with a 22.6% stake.

“The acquisition will enable Kawan to expand and enhance the efficiency of its group’s activities into food truck business,” read Kawan Food’s announcement.

Kawan Food’s shares closed unchanged at RM3.82 today, and for a market capitalisation of RM1.03 billion.