KUALA LUMPUR (Dec 11): FGV Holdings Bhd (KL:FGV) announced that its plan to develop an integrated dairy farm business in Chuping, Perlis, with an investment of up to RM4.5 billion, has lapsed due to the expiration of the deadline for meeting the necessary conditions precedent in the shareholders' agreement signed two years ago.
This follows the termination of a conditional shareholders’ agreement, which was signed in August 2022, between its wholly owned unit FGV Integrated Farming Holdings Sdn Bhd, Qatar-based Baladna for Trading and Investment WLL and Touch Group Holdings Sdn Bhd.
While the termination may not have a material impact on FGV Integrated Farming, FGV did not disclose the specific conditions that were unmet in its bourse filing on Tuesday.
Under the agreement, the three parties were to establish a joint venture (JV) company, with FGV Integrated Farming holding a 40% stake, Baladna also holding 40%, and Touch Group holding 20%. At that time, FGV had said that the proposed JV was subject to approvals from its shareholders and other relevant authorities.
The project was planned to be developed on a 3,259-hectare site in the FGV Chuping Agro Valley, with an expected investment of up to RM4.5 billion.
FGV had projected that the project would be commercially operational by 2025, aiming to produce 100 million litres of fresh milk annually within the first three years, with production potentially reaching 300 million litres within 10 years.
Shares of FGV closed down two sen or 1.71% at RM1.15 on Tuesday, giving the group a market capitalisation of RM4.27 billion. The counter also has fallen over 16% year-to-date.