PETALING JAYA: RHB Research expects Texchem Resources Bhd’s disposal of Sea Master Food to Japan’s Yamae Global Co to unlock the value for one of the group’s subsidiaries at attractive valuation multiples relative to book value and earnings.
The implied valuation for this disposal made up 55% of the group’s market capitalisation and it possessed other profit-making and growing subsidiaries/segments.
The proposed RM10mil special dividend also would offersan attractive prospective yield of about 13%, said RHB Research.
Texchem is disposing of a 34% stake in Sea Master Food to Yamae Global for RM14.9mil cash.
The proceeds are intended mainly for a RM10mil special dividend payout and RM4.6mil debt repayment.
This will reduce Texchem’s gearing marginally from 0.81 times to 0.79 times.
The disposal is expected to be completed by the fourth quarter of 2025.
RHB Research, which is positive on the deal, said this would partially crystalise the value of its food business at attractive multiples while enabling the group to leverage the buyer’s expertise.
The partnership with Yamae Global, the international arm of Yamae Group, a diversified food trading conglomerate, is expected to strengthen Sea Master Food’s procurement capabilities.
It will also enhance supply chain efficiency, and provide international market access, supporting the longer-term expansion of the group’s food division.