Tex­chem to sell stake in pes­ti­cide units

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Tex­chem Re­sources Bhd is di­vest­ing its stake in two house­hold in­sec­ti­cide firms for a to­tal of RM80.5 mil­lion.

In a fil­ing with the stock ex­change, Tex­chem said it is dis­pos­ing a 30% stake in Fu­makilla Asia Sdn Bhd (FASB) for RM61.5 mil­lion and 26.36% in PT Fu­makilla No­mos (PTFN) to Fu­makilla Ltd for RM19 mil­lion.

Tex­chem said the pro­posal will en­able the group to recog­nise a net gain of about RM16.7 mil­lion or 13.68 sen per share at the group level based on its au­dited con­sol­i­dated fi­nan­cial state­ments ended Dec 31, 2015 and au­dited fi­nan­cial state­ments of FASB and PTFN for the pe­riod ended June 30, 2016.

Of the dis­posal pro­ceeds, Tex­chem said RM6.09 mil­lion will be utilised for its spe­cial div­i­dend pay­out of 5%; RM10.14 mil­lion for re­pay­ment of bank bor­row­ings; RM20 mil­lion for work­ing cap­i­tal and RM42.92 mil­lion for in­vest­ment in ex­ist­ing di­vi­sions.

Tex­chem said the dis­posal will en­able it to un­lock the value of its non-core busi­ness and re­in­force its ex­ist­ing busi­nesses.

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