PETALING JAYA: Genting Plantations Bhd
has proposed to undertake a joint venture (JV) with Shouguang Vegetable Science and Technology Sdn Bhd (SVST) to develop approximately 70 acres of land in Kulai, Johor as a centre of excellence in tropical vegetable crops.
The plan is to have two separate companies: the JV Technology Co and JV Operating Co whereby Genting Plantations will hold the majority 60% while SVST the remainder, it said in a Bursa announcement.
The initial share capital of the joint venture companies shall be RM1,000 comprising 1,000 ordinary shares of RM1 each, it said.
This will eventually rise to an intended paid up capital of RM210mil for the JV Technology Co and RM315mil for the JV Operating Co, it said.
SVST is an indirect unit of China-based Shandong Shouguang Vegetable Industry Group Co Ltd (SSVIG).
The China-based SSVIG was established in 1998, and is a national key leading enterprise in agricultural industrialisation in China.
Its operations encompass the entire value chain of the vegetable industry, including seed research and development; seedling propagation; standardised cultivation; deep processing; cultivation planning and planting development; wholesale market operation; biological control, as well as import and export trading.
According to the circular, SSVIG is seen as one of China’s top national leading agricultural enterprises and a leader in vegetable seed research and development with a recorded revenue of approximately 3bil yuan in 2023.
SVST will provide contribution in-kind through the provision of technology, know-how and expertise, including identification of planting material which are suitable for growing in the tropical environment while Genting Plantations will provide capital for the JV Technology Co, it said.
"For the JV Technology Co, SVST will provide technology, know-how and expertise. The consideration for the above will be satisfied partly by cash and partly by ordinary shares resulting in SVST holding 40% shareholding. Concurrently, Genting Plantations will subscribe for 60% shareholding by cash," it said.
Meanwhile, it said Genting Plantations and SVST will subscribe for 60% and 40% respectively of the equity shares in the JV Operating Co by cash.
