KUALA LUMPUR, Aug 18 (Bernama) -- Genting Plantations Bhd’s (GENP) indirect wholly-owned subsidiary, ACGT Vegetable AgVentures Sdn Bhd (AVA), has proposed to undertake a joint venture with Shouguang Vegetable Science and Technology Sdn Bhd (SVST).
SVST is a wholly-owned subsidiary of Shouguang Vegetables (Guangzhou) Agriculture Technology Co Ltd, which is in turn an indirect wholly-owned subsidiary of Shandong Shouguang Vegetable Industry Group Co Ltd (CSV).
Genting Plantation said the proposed JV is mainly to develop about 28.33 hectares of land in Kulai, Johor, as a centre of excellence in tropical vegetable crops to support sustainable economic growth and food security.
“The proposed JV will be implemented via the setting up of two joint venture companies, namely JV Technology Company and JV Operating Company, wherein AVA and SVST will hold 60 per cent and 40 per cent of shares in both these joint venture companies, respectively,” it said in a stock exchange filing with Bursa Malaysia.
It said the initial share capital of the joint venture companies will be RM1,000, comprising 1,000 ordinary shares of RM1 each, with intended paid-up capital of RM210 million for JV Technology Company and RM315 million for JV Operating Company.
GENP said the proposed JV aims to harness the company’s genomics capabilities and CSV’s technology, know-how and vast germplasm library to develop high-yield, climate-resilient crop varieties to support national food security while expanding GENP’s business into vegetable seeds. “This diversification will enhance GENP’s business resilience and seek to unlock new revenue streams in vegetable crops, beyond oil palm,” it added.
It said the proposed JV is not expected to have any material effect on the net assets per share and earnings per share of the GENP group for the financial year ending Dec 31, 2025.
-- BERNAMA
