KUALA LUMPUR (Sept 10): Texchem Resources Bhd (KL:TEXCHEM) is disposing of a 34% stake in its indirect wholly-owned Sea Master Food Sdn Bhd (SMF) to Japan’s Yamae Global Co Ltd for RM14.94 million, cash.

Post-disposal, SMF will remain a sub-subsidiary of Texchem with a 66% equity interest, held via Wilpack Food Services Sdn Bhd.

In a filing with Bursa Malaysia on Wednesday, Texchem said the move will allow SMF to tap into the technical know-how and expertise of the Yamae Group, a Japanese conglomerate engaged in the food business spanning fresh produce, processed food, confectionery and alcoholic beverages.

"With Yamae Group’s collaboration, SMF is expected to further improve on its operational efficiencies and expand its business opportunities, be it locally or overseas," it said.

Of the RM14.94 million proceeds, Wilpack plans to distribute RM10 million as a single-tier dividend to shareholders, use RM4.64 million for loan repayments, and allocate RM300,000 for expenses and taxes related to the disposal.

SMF, incorporated in 1990, is involved in importing, marketing, trading and distributing foodstuffs including rice. For the financial year ended Dec 31, 2024, it posted a net profit of RM1.14 million on net assets of RM12.74 million.

Besides SMF, Texchem's food business includes the Sushi King chain of restaurants. It is also involved in the trading of dyestuffs, textile auxiliaries and chemicals used in the electronics, plastics and other manufacturing industries.

Texchem said the disposal will not have a material impact on its earnings per share for FY2025, though it will improve the group’s net assets per share and gearing. As SMF remains a sub-subsidiary, no gain or loss will be recognised at the group level.

The proposed disposal is expected to be completed by the fourth quarter of 2025.

Shares of Texchem closed half a sen or 0.73% lower at 68 sen on Wednesday, valuing the company at RM85.31 million.