KUALA LUMPUR (Oct 16): Farm Price Holdings Bhd (KL:FPHB) has closed the acquisition of a Johor-based grocer after a court lifted an injunction that previously barred the sale of some of its assets.
The Johor Bahru Sessions Court has set aside an order dated July 24 that froze the acquisition of Hong Yun Vegetables & Fruits Sdn Bhd, according to an exchange filing on Thursday. The decision clears the way for Farm Price’s wholly owned unit, Food Life Sdn Bhd, to proceed with the deal.
“With no further hindrance, the proposed acquisitions are deemed completed pursuant to the terms of the sale of assets and business agreement and sale of assets agreement,” Farm Price said.
The ex-parte Mareva injunction, an urgent order applied unilaterally to freeze a particular asset, was filed by Four Season Vege Sdn Bhd and had prevented Hong Yun from selling assets worth up to RM849,376.07.
The now-lifted injunction followed Farm Price’s June proposal to acquire Hong Yun’s grocery wholesale and retail business, together with assets such as furniture, fittings and factory equipment, for RM3.9 million.
Farm Price had also agreed to buy certain assets from another Johor-based firm, D & D Sinma 8888 Univeg Trading, for RM600,000, bringing the total deal value to RM4.5 million.
The company expects the acquisitions to broaden Farm Price’s supply chain with new product offerings and expand its customer base in the food services sector across Malaysia and Singapore.
Farm Price, listed on the ACE Market in May 2024, is mainly involved in the wholesale and distribution of fresh vegetables. It also operates a retail store in Ulu Tiram, Johor, selling fresh produce and grocery items directly to consumers.
The stock closed half a sen higher or 1.19% at 42.5 sen on Thursday ahead of the announcement. At the last price, the company has a market capitalisation of RM191.3 million.