KUALA LUMPUR: PLS Plantations Bhd
's 51%-owned unit PLS LESB Sdn Bhd has entered into a heads of agreement with Millennium Agriculture Technology Sdn Bhd (MAT) and its parent, MyFarm Inc Japan, to establish a joint venture to launch a large-scale durian cultivation project in Malaysia.
In a statement, PLS said MAT will assume up to 49% equity interest in the joint venture while PLS LESB will own the remaining 51%.
The entirety of the joint venture vehicle is valued at RM371mil.
According to PLS, the parties will collaborate in the development of up to 1,000ha of durian plantation in Pahang.
PLS, which is 73%-controlled by Tan Sri Lim Kang Hoo via Ekovest Bhd, said the joint venture partnership would pave the way for Japanese technology transfer and participation in Malaysia’s long-term food security programme.
"This JV will facilitate the transfer of Japanese technology and expertise in agriculture on a scale never seen before in Malaysia. It will boost PLS’ core competencies as a leading producer of export-quality agriculture and aquaculture produce,” said Lim.
Meanwhile, MyFarm operates one of the largest agricultural schools in partnership with Tokyo Agricultural University and has produced 2,300 graduates over the past 12 years.
Its shareholders include Japan’s National Federation of Agricultural Cooperative Associations, Tsumura & Co (a Japanese herbal medicine manufacturer listed on Tokyo Stock Exchange), Nichiryu Nagase Co Ltd (a leading Japanese distributor of agricultural machinery and farm products), DCM Holdings Co Ltd (one of the largest home improvement businesses in Japan) and SB Technology Co Ltd (previously known as Softbank Technology Corp).
