KUALA LUMPUR: Dutch Lady Milk Industries Bhd
is proposing to acquire 14.49 million shares representing 35% equity interest in Jemaluang Dairy Valley Sdn Bhd (JDV) from Kulim (Malaysia) Bhd for RM17.5mil.
JDV is a special purpose vehicle - 65% owned by Kulim and 35% by A2 Fresh Holdings Sdn Bhd - incorporated to operate a dairy project in Sungai Ambat, Jemaluang, Mersing, in Johor, in collaboration with the East Coast Economic Region Development Council (ECERDC).
In a filing with the stock exchange, DLMI said its acquisition of the equity in JDV will provide it with access to the fresh milk segment and enhance DLMI’s ability to meet the growing demand for fresh milk.
This will also strengthen its position in the Malaysian ready-to-drink (RTD) milk market, which is expected to be increasingly driven by the fresh milk
segment.
According to the filing, JDV's dairy farm, which commenced operations in 2025, is expected to o expand its herd from the current 1,000 milking cows to 2,000 milking cows by 2030.
JDV also intends to construct a production facility with an annual production capacity of approximately 16 million to 20 million litres of pasteurised milk by 2027.
The proposed acquisition, which is anticipated to be completed in the first quarter of 2027, is expected to contribute positively to the future revenue and earnings of DLMI, thereby enhancing shareholders’ value in the long-term.
