KUALA LUMPUR: Rhone Ma Holdings Bhd’s 49%-owned subsidiary A2 Fresh Sdn Bhd has entered into a joint venture-cum-shareholders agreement with Kulim (M) Bhd to develop, operate and manage a potential dairy project.

       It said in a filing with Bursa Malaysia that Kulim would hold a 65% equity interest in the joint venture while A2 Fresh would own the remaining 35%.

       The parties estimated that the initial investment requirement for the dairy project would be up to RM41.39mil, excluding the milk processing plant, which will be funded through equity in the form of subscription of shares by the shareholders.

       “The dairy project is developed to increase the nation’s milk production to reduce dependence on imported milk and it aims to produce up to 11 million litres of fresh milk a year.

       “The joint venture will allow Rhone Ma to expand the footprint of its dairy farming business in the southern region of Peninsular Malaysia whilst leveraging on the financial resources of Kulim,” said Rhone Ma.

       The joint venture is expected to contribute positively to the consolidated earnings and net assets per share of the group for the financial year ending Dec 31, 2021.

       Barring any unforeseen circumstances, the subscription of shares in the joint venture by Kulim and A2 Fresh in proportion to the agreed shareholding ratio is expected to be completed by the fourth quarter of 2021, according to the statement.