KUALA LUMPUR (April 13): Texchem Resources Bhd is acquiring the Sushi King Japanese chain in Vietnam for VND7.8 billion (RM1.37 million) cash, and assuming a debt of US$1.75 million (RM6.76 million).

In a filing with Bursa Malaysia today, Texchem said its 70.35%-owned subsidiary Sushi Kin Sdn Bhd has on April 12 received an enterprise registration certificate from the business registration division under the Department of Planning and Investment of Ho Chi Minh City to acquire Vietnam-based Sushi King Co Ltd.

Sushi King Co is currently 70%-owned by Le Van Long and 30% by Investment, Development and Information Service Co Ltd.

Texchem, which runs the Sushi King chain in Malaysia, said the acquisition would enlarge its business opportunities in Vietnam.

The group added that the purchase consideration was paid in cash via Sushi Kin’s internal funds.

While the acquisition is not subject to shareholders’ approval, it requires the issuance of an Investment Registration Certificate (IRC) by relevant local licensing authority to Sushi Kin, being the sole foreign investor in the Vietnam outfit.

“The estimated time frame for the submission and issuance of the IRC is within three months from the date of this announcement,” Texchem said.

In a separate announcement, Texchem also announced that the group has completed the compulsory acquisition of Texchem-Pack Holdings (S) Ltd today.

Therefore, Texchem-Pack Holdings has become the group’s wholly-owned subsidiary and will be delisted from Singapore Stock Exchange tomorrow.

Texchem shares closed one sen or 0.59% lower at RM1.70 today, giving it a market capitalisation of RM207.36 million.