Advanced Holdings, has, on May 21, entered into a joint venture agreement (JVA) with its joint venture partners, Agrimark and PT Borneo Pasifik Global in relation to Advanced Agri, its joint venture company (JVC).
The trio, on March 29, entered into a non-binding memorandum of understanding (MOU) where it would incorporate a JVC for the business of corn cultivation, corn accumulation and trading, and corn processing in Indonesia.
Agrimark is an exempt private company incorporated in Singapore. Its main business is in investments.
PT Borneo, which is in the business of trading and distribution of mineral commodities, was incorporated in Indonesia.
Under the JVA, the JVC will have a total issued and paid-up share capital of $2.1 million with 21,000 shares. Advanced Holdings will hold a 51% stake in the JVC, while Agrimark and PT Borneo will each hold stakes of 40% and 9% respectively.
At the first stage, the JV group will be engaged in corn plantation management, corn trading and corn processing in the Province of North Sulawesi, Bolaang Mongondow Regency, Indonesia, which is expected to begin in the 2HFY2021.
Advanced Holdings will incorporate a majority-owned subsidiary, PT OPCO in Indonesia within 10 business days following the date of the JVA, where it will own 99.99% shares. PT Borneo will own the remaining 0.01% in PT OPCO, which will undertake the management of the businesses in Indonesia.
SEE:Advanced Holdings disposes entire stake in ZMK Technologies for $2.1 mil
At the second stage, the JV group will be engaged in corn milling in Central Java, Indonesia, which is expected to commence in 2022.
For the purposes of this, Advanced Holdings will incorporate yet another majority-owned subsidiary, PT MILLCO in Indonesia within 10 business days of the JVA.
PT MILLCO will undertake the management of the businesses in Java Island, Indonesia.
According to Advanced Holdings, the JV will provide it with the opportunity to expand its existing agriculture business, with the potential for growth.
The JV is said to enhance the long-term view of Advanced Holdings’ shareholders, says the company.
Shares in Advanced Holdings closed flat at 8.7 cents on May 21.
