In view of MSM Perlis rescinding the SPA, F&N says Tuanku Syed Sirajuddn has decided to divest his equity interest in the company
By FARA AISYAH / pic credit: fn.com.my
FRASER & Neave Holdings Bhd (F&N) plans to develop a dairy farm suffered a fresh blow as Raja Perlis Tuanku Syed Sirajuddin Tuanku Syed Putra Jamalullail divested his 30% in the F&N AgriValley Sdn Bhd venture to F&N for RM3 million.
Raja Perlis divested some three million ordinary shares with F&N now has become the sole beneficial owner of F&N AgriValley.
Tuanku Syed Sirajuddin previously entered into a shareholders’ agreement on April 6, 2020, with F&N AgriValley to subscribe the 30% equity in the company for the same amount.
“It was the intention of Tuanku Syed Sirajuddin together with F&N, through their investment in F&N AgriValley, to promote and facilitate the development of the proposed integrated crop and dairy farming project that the F&N group had intended to embark upon on the successful completion of the acquisition of 4,453.92ha of leasehold land located in Chuping, Perlis, known as Ladang Chuping,” F&N noted in an exchange filing yesterday.
The company subsequently announced on April 9 that the vendor, MSM Perlis Sdn Bhd, had not granted any extension of time for the satisfaction of conditions precedent under the sale and purchase agreement (SPA) for the acquisition of Ladang Chuping and had rescinded the SPA.
In view of the cancellation, F&N said Tuanku Syed Sirajuddn has decided to divest his equity interest in the company.
The stipulated timeline for F&N AgriValley to obtain the approval for Ladang Chuping development from the Economic Affairs Ministry ended on April 8, which fell within the government’s mandated Movement Control Order (MCO) period between March 18 and April 14, 2020.
MSM Perlis had on April 6 and April 9, 2020 informed F&N AgriValley that it will not grant any extension of time for the satisfaction of conditions precedent under the SPA; and rescinded the SPA and refund the retention sum held by its solicitors and the deposit to F&N AgriValley in accordance with the SPA.
Last year, F&N proposed to commit about RM650 million of investment for the Ladang Chuping project, including the clearance and purchasing costs of Phase 1 of the agriculture land.
The fast-moving consumer goods had proposed to acquire the land for RM156 million.
In Phase 1 of the project, F&N aimed to import 4,000 milking cows with a potential output of 40 million litres of fresh milk.
In the longer term, Ladang Chuping was planned to be hosting 20,000 milking cows to produce 200 million litres of fresh milk yearly.