F&N's unit to acquire entire shares in Ladang Permai Damai for RM215.59mil cash

KUALA LUMPUR: Fraser and Neave Holdings Bhd’s (F&N) indirect 65 per cent-owned subsidiary, Dagang Sejahtera Sdn Bhd (DSSB), is acquiring the entire shares in Ladang Permai Damai Sdn Bhd for RM215.59 million cash.

In a filing with Bursa Malaysia today, F&N said following the proposed acquisition, DSSB has entered into a conditional share sale agreement with Dupont and Leosk Enterprises Sdn Bhd and Malaysia Nominees (Tempatan) Sdn Bhd.

It said Dupont and Leosk is the beneficial owner of 25 million shares, or sale shares, of RM1 each in Ladang Permai Damai while Malaysia Nominees is the registered owner of sale shares and nominee company of OCBC Bank (Malaysia) Bhd.

F&N said Ladang Permai Damai is principally engaged in the cultivation of oil palm, processing of fresh fruit bunches and marketing of crude palm oil, palm kernel and fresh fruit bunches.

It said the business intention for DSSB in acquiring Ladang Permai Damai is for the F&N group to embark on the upstream fresh milk business for downstream production and distribution of fresh milk.

"After completion of the proposed acquisition, Ladang Permai Damai will lease the Permai Damai Estates to the F&N group at a fair market rate to carry out operations of the integrated dairy farm and crop plantation.

It said the Permai Damai Estates would enable the F&N group to own a vertical integration business and operations based on locally grown crops for feed to its dairy farm, which in turn would lower the value chain cost per litre, enabling it to be less dependent on imported milk and promote the local agricultural industry

It added that barring any unforeseen circumstances and subject to the fulfilment of the conditions precedent, the proposed acquisition is expected to be completed in the third quarter of 2022. - Bernama