Fumakilla Ltd. (TSE:4998) agreed to acquire remaining 30% stake in Fumakilla Asia Sdn. Bhd. from Texchem Resources Bhd (KLSE:TEXCHEM) for MYR 61.5 million on October 13, 2016.

In a related transaction, Fumakilla Ltd. (TSE:4998) entered into a conditional sale and purchase of shares agreement to acquire the remaining 26.36% stake in PT Fumakilla Nomos from Texchem Resources Bhd (KLSE:TEXCHEM) for MYR 19 million on October 13, 2016. Fumakilla Ltd. will acquire 22.7 million shares of Fumakilla Asia and will pay 10% of deal value at the time of signing of agreement and remaining 90% of the consideration within 2 weeks after the fulfillment of the condition precedent. Fumakilla Asia reported profit after tax of MYR 6.79 million, net assets of MYR 99.87 million revenue of MYR 179.1 million for the year ending on December 31, 2015.

The transaction is subject to approval of Texchem Resources's shareholders at a general meeting. The meeting of the shareholders of Texchem Resources will be held on November 25, 2016 to consider the transaction. The transaction was recommended by the Board of Texchem Resources.

The transaction is expected to complete within the fourth quarter of 2016. Texchem Resources will use the proceeds to explore business opportunities with reasonable returns to be identified from time to time as opportunities arise. Currency conversion was done through www.oanda.com as of December 31, 2015.