KUALA LUMPUR: IOI Corporation Bhd
unit Loders Croklaan Group B.V. and Ireland's LCK Nutrition Ltd have called off their joint venture which would have involved the development of the nutrition lipid Betapol.
IOI Corp said on Thursday the agreement, which was entered into on June 23, 2015, was for Loders Croklaan to subscribe for a stake in LCK Nutrition Ltd for US$25mil.
Under the corporate exercise, the Betapol business (consisting business intellectual property, goodwill, contracts, sales book and records) would be trasferred from Loders Croklaan to LCK Nutrition for US$25mil.
In the June 23, 2015 announcement to Bursa Malaysia, IOI Corp said Betapol, which is one of Loders Croklaan’s most groundbreaking innovations, is a palm oil-derived nutritional additive which is used to fortify infant milk powder globally.
The incorporation of LCK Nutrition and the subscription was for the formation of a 50:50 JV with a subsidiary of Kerry Group Plc to develop and market the nutrition lipid Betapol business.
Kerry is a public food company headquartered in Ireland. It is listed on the Irish and London stock exchanges.
Betapol mimics the unique fat composition and structure of human milk fat and is said to have a positive physiological effect on brain function and physical development compared to standard vegetable oils used in infant formulas.
In the latest development, IOI Corp said the share subscription and redemption agreement between Loders Croklaan, LCK Nutrition and Denny Foods Lte for the proposed JV had were mutually terminated on Wednesday with immediate effect.
“Accordingly, the transactions contemplated by the agreement have not been concluded. The termination is not expected to have any material effect on the earnings or net assets of IOI Corp Group for the financial year ending June 30, 2016,” it said.
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