Fumakilla to buy 70% of Texchem subsidiaries
GEORGE TOWN: Fumakilla Ltd Japan (FMJ) is taking up a 70% interest in Texchem Resources Bhd’s (TRB) subsidiaries Technopia Sdn Bhd and PT Technopia Jakarta for Rm127.2mil (Us$42.4mil).
TRB chairman Tan Sri Fumihiko Konishi said in a press conference that the unique feature of the deal was that after TRB’S disposal of its stake, the existing TRB management in Technopia Sdn Bhd and PT Technopia Jakarta would still be maintained.
“The main advantage of the proposed new partnership is the transfer of technology and the availability of financial and human resources from FMJ.
“We will also be able to jointly enhance business development in Asean to become the undisputed number one player in the region,” he said.
Technopia Sdn Bhd and PT Technopia Jakarta are involved in the manufacturing and sales of household insecticides such as mosquito coils, aerosol, and insect repellants.
Konishi said the surplus funds arising from the transaction would be used for the reduction of borrowings and to reinforce and expand TRB’S other existing core businesses which have growth potential and returns.
“With this new joint-venture, the entire Asean market of about 600 million people will now be opened for exploitation jointly by FMJ and Texchem.
“We do foresee a change in the future of the household insecticides market as peoples’ lifestyles and standard of living improve.
“The consumer market in countries like Malaysia, Singapore, and Thailand will enter into advanced nation status by 2020.
“This means that the household insecticides market in these countries, like the Japanese market, will become matured and increasingly sophisticated,” he added.
On TRB’S restaurant division business, Konishi said the group would allocate Rm10mil for the division this year to expand the Sushi King, Miraku, and Goku Raku ramen restaurants in the country.
“We will reduce dependency on our consumer electronic division business by putting more resources for non-consumer electronic products, such as making parts and components for the medical devices and medical equipment industry,” he said.
On the the food business division business, Konishi said TRB was now collaborating with overseas seafood producers to tap into markets in China, Japan, Taiwan, Hong Kong and Australia.