The Moley’s Oyster Bar menu serves Fine de Claire No.2 oysters and Kelly’s Gigas Oysters No.4, flown in fresh every week from France and Ireland respectively.
KUALA LUMPUR: Borneo Aqua Harvest Bhd (Bahvest), through unit Plentiful Harvest Sdn Bhd (PHSB). has terminated a joint-venture (JV) agreement with City Harvest Aquaculture Sdn Bhd (CHASB) to undertake an oyster farming project.
In a filing with Bursa Malaysia, the marine fish breeder and trader said the move was due to CHASB’s failure to deliver the requested books, records, accounts, documents and vouchers relating to the business and affairs of CHASB despite repeated requests as well as unresolved shareholders’ dispute within CHASB that had disrupted its operations.
Under the JV agreement inked with CHASB in January 2014, PHSB would let CHASB use its four parcels of land, measuring more than 35 acres, in Sandakan and Pulau Palak, Sabah, to carry out CHASB’s business.
CHASB is involved in the import and export, supply and distribution of oyster aquaculture and other related aquaculture products,
Based on the agreement, PHSB was entitled to 50% of CHASB’s net profit of CHASB except for in the first and second years of operations, when there would not be any net profit distribution.
Bahvest said following the termination of the JV agreement, PHSB would seize all assets belonging to CHASB situated on the land as provided for in the agreement.
“The property, plants and equipment belonging to PHSB and its related companies, which had previously been utilised by CHASB for the project, would be returned to PHSB and its related companies in good working condition,” it continued.
Signs of problems at the oyster farming project emerged in the middle of last year, when Bahvest issued its 2016 annual report.
According to the report, CHASB’s shareholders - a local individual and a Taiwanese oyster farming expert - began to develop different opinions and failed to get along, thus affecting the oyster farming operation in the financial year ended March 31, 2016.
Bahvest said PHSB had tried, without success, to help the parties in ironing out their differences.
“In view of the impasse at CHASB, the board had no choice but to initiate termination procedures for the JV agreement and repossess all the land and facilities belonging to PHSB that were made available for this oyster farming project,” it said in the annual report.
The group would try to identify suitable and qualified JV partners to reconvene the project, Bahvest added.
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