KUALA LUMPUR, Rex Industry Bhd has proposed the disposal of two of its profit-generating subsidiaries as part of a restructuring exercise to strengthen its financial footing and streamline operations.
In a filing with Bursa Malaysia, the food and beverage group said the divestment will enable it to unlock value from its assets, improve liquidity, and reduce its overall borrowings.
Rex explained that while the subsidiaries have been contributing positively to the group, the disposal forms part of a long-term strategy to consolidate resources and refocus on core businesses with higher growth potential. “The proposed disposal is in the best interest of the company and its shareholders, as it provides an opportunity to realise immediate cash proceeds, reduce gearing, and enhance working capital,” it said.
Industry observers noted that the move reflects Rex’s efforts to reposition itself amid a challenging consumer goods landscape, where rising costs and competition are pressuring margins.
The disposal, expected to be completed within the current financial year, is subject to regulatory approvals and the fulfilment of standard conditions precedent.
Rex added that it will continue to explore opportunities to strengthen its brand portfolio and expand into new markets despite the planned divestments.
