KUALA LUMPUR, March 5 – Myfarm Inc, a Japanese integrated agriculture company based in Kyoto, will invest RM210 million in PLS Plantations Bhd’s durian cultivation project, marking the largest Japanese investment in Malaysia’s durian industry.
A joint-venture (JV) cum shareholders’ agreement was signed between both groups here, today to launch a 1,000-hectare large-scale durian cultivation project in Pahang, through a JV company, Akar Barat Sdn Bhd, according to a joint media statement released today.
PLS Plantations’ subsidiary, PLS-LESB Sdn Bhd has entered into the JV cum shareholders’ agreement with Myfarm’s unit, Millennium Agriculture Technology Sdn Bhd (MAT).
This is pursuant to the heads of agreement that was signed on Jan 16 this year, wherein MAT would invest up to 49 per cent equity interest in a wholly-owned company of PLS-LESB, which in turn is 51 per cent-owned by PLS Plantations.
PLS Plantations chairman Tan Sri Nazir Razak said: “This marks the first step of PLS in transforming into Malaysia’s leading agrifood company, whereby further strategic partnerships will be identified and expand into other plantation activities such as forest plantation, cash crops, and other agricultural and aquaculture activities to be identified as part and parcel of the National Food Security Enhancement.”
Meanwhile, Myfarm founder and chief executive officer Kazuma Nishitsuji said: “PLS is a good fit for Myfarm as durian cultivation and intercropping farming is a sustainable investment which can accelerate our agriculture expansion in Malaysia and the region.”
MAT and Myfarm is expected to complete the first tranche of the investment in the JV company on or before April 30 this year, according to the statement.
