Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 19): Texchem Resources Bhd has proposed to raise its stake in Sushi King Sdn Bhd to 98% through the acquisition of another 28% stake in the restaurant chain operator for RM102.2 million.

Texchem said the purchase of the additional stake from Asia Yoshinoya International Sdn Bhd will allow the group to enhance its assets and earnings base through the consolidation of the stake, and to facilitate easier decision-making and control of the restaurants.

"The proposed acquisition will serve as an opportunity for the group to increase its revenue contribution from the restaurant division," it said in a bourse filing.

"With the proposed acquisition, Sushi King will be able to strengthen its decision-making processes, thus allowing greater flexibilities, ease and speed of decision-making for Sushi King to plan its business strategies.

"As such, it will enable Sushi King to be operated in a more effective and efficient manner in its execution of its growth strategies and operations," added Texchem.

The group expects the acquisition to be completed by the first half of the year.

Shares in Texchem finished one sen or 0.77% higher at RM1.31 on Wednesday (Jan 19), valuing the group at RM162.57 million.

Edited ByS Kanagaraju
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