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PETALING JAYA: Rhone Ma Holdings Bhd’s indirect 49%-owned subsidiary A2 Fresh Sdn Bhd has entered into a joint venture cum shareholders agreement with Kulim (Malaysia) Bhd to develop, operate and manage a potential dairy project.

According to the group’s Bursa disclosure, the venture will be carried out by a special purpose vehicle (SPV) under a 65:35 equity split with A2 Fresh holding the minority interest.

For the project, it estimated an initial investment requirement of RM41.39 million, excluding the milk processing plant, which will be funded through a subscription of shares in proportion to their shareholding ratio.

“The dairy project is developed to increase the nation’s milk production to reduce dependence on imported milk and it aims to produce up to 11 million liters of fresh milk a year,” said Rhone Ma.

The group elaborated that the venture will allow it to expand the footprint of its dairy farming business in the Southern region while leveraging Kulim’s financial resources. It expects the joint venture to contribute positively to its future earnings and enhance its shareholders value in the long term.

The agreement is subject to A2 Fresh and Kulim obtaining the necessary approval to participate in the dairy project as well as the registration and the settlement of the paid up capital of the SPV. The paid share subscription will be settled through internally generated funds.

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