FRESH . . . The new hatched chicks at CAB Cakaran Sdn Bhd hatchery incubator in Seberang Jaya Industrial Park, Penang yesterday.
KUALA LUMPUR: After almost two years, CAB Cakaran
Corp Bhd’s plan to set up an integrated poultry business partnership with Indonesia’s Salim Group has finally progressed beyond the memorandum of understanding (MoU) stage.
In a filing with Bursa Malaysia on Wednesday, the poultry farm and Kyros Kebab outlet operator said its unit Cabindo Poultry Sdn Bhd had signed a joint-venture (JV) agreement with billionaire Anthoni Salim-controlled investment vehicle, PT Ternak Ayam Terpadu Indonesia, to form several JV firms.
Cabindo will initially have a 10% stake in the four JV companies, whose activities will be feed milling, broiler and breeder farming, layer farming, and slaughtering and processing of halal chicken.
Under the JV agreement signed on Wednesday, Cab Cakaran said it and Ternak Ayam Terpadu would combine their respective resources and expertise to produce halal poultry-based products for the Indonesian consumers.
The JV agreement did not lay down any terms on the investment amount that would be needed. The parties will enter into a supplemental JV agreement later to set out the terms of the capital contribution.
According to the Cab Cakaran, the current agreement is required to facilitate the parties’ application to the Indonesian Foreign Investment Coordinating Board, also known as Badan Koordinasi Penanaman Modal (BKPM).
In an announcement to Bursa Malaysia on June 30 last year, the Penang-based company said it had made an application to BKPM in relation to the proposed investment in Indonesia.
Cab Cakaran signed an MoU with KMP Pte Ltd, Salim Group’s investment holding company, on Dec 6, 2015, to study the possibility of having a JV in the poultry business in the republic.
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