Texchem sells assets in Perak for RM2.65m

PETALING JAYA: Texchem Resources Bhd is disposing of its property and machinery in Perak to SHT Marine Frozen Sdn Bhd for RM2.65 million cash.

In a filing with Bursa Malaysia yesterday, Texchem Resources said Ocean Pioneer Food Sdn Bhd (OPF) has entered into a sale and purchase agreement (SPA) to dispose the leasehold land in Perak together with buildings erected on it for RM2.28 million cash.

OPF has also entered into a machinery purchase agreement to dispose of freezers, cold room, chilled room, ice makers and all related components for RM371,000 cash.

The group said the proposed disposal would unlock the value of the property and the machinery, allow it to realise gain via the disposal and strengthen its financial position.

The company is expected to realise a gain on disposal of RM1.69 million in total from the sale of the land, property and machinery.

Of the proceeds arising from the proposed disposal, RM1.2 million will be used for repayment of borrowings, RM890,000 for capital expenditure and RM332,000 for general working capital.

In a separate filing, Texchem Resources said its 51% owned subsidiary Dim Sum Delight Sdn Bhd has ceased business operations effective yesterday.

The company, which was principally engaged in the sales of food and beverages, had incurred losses of RM895,642 for the year ended Dec 31, 2016 and is not expected to turn around in the near future.

Texchem’s share price rose marginally by one sen to close at RM1.42 yesterday with a total of 17,000 shares traded and market capitalisation of RM176.22 million.