Global Agricapital Holdings, a wholly-owned subsidiary of Nutryfarm, has entered into a joint venture agreement (JVA) with Kong Jun Durian on June 10.
Under the JVA, the parties intend to establish a joint venture company (JVC) to be incorporated in Singapore to sell and distribute pre-packed durians in Singapore.
Through the JVC, Global Agricapital Holdings will supply the pre-packed durians and Kong Jun will oversee the sales and distribution.
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Global Agricapital Holdings will hold 51% in the JVC while Kong Jun will hold the remaining 49%.
Kong Jun is owned by the Ang family.
Ang Seck Puan, the founder of Singapore’s well-known retailer Combat Durian, owns a 50% stake in Kong Jun, while other members, Ang Choon Beng and Ang Choon Cheng holding a 25% stake each.
Ang Seck Puan has over 50 years of experience in the fruit trading business, particularly in the durian industry.
On June 4, Global Agricapital Holdings announced a share placement exercise to raise $6.38 million to drive its growth plans in Asia’s durian industry.
NutryFarm, under the share placement, will issue 22 million new ordinary shares at an issue price of 29 cents per share, representing a 7.3% discount to the volume weighted average price (VWAP) of 31.3 cents for trades done on the SGX-ST on June 4.
“Durian is one of Singapore’s well-loved fruits and there are several durian-related products popular with Singapore consumers as well, hence Singapore is one of our key target markets in Asia. Partnering with the Ang Family is a new step forward that will strengthen our business presence in Singapore and it enable us to create brand awareness in Southeast Asia and Chinese markets as tourism opens up,” says Cheng Meng, executive director and CEO of NutryFarm.
“Asia’s durian industry is supported by positive growth drivers and our recent share placement will strengthen our balance sheet and scale our growth plans within this niche industry,” adds Cheng.
“We are excited to partner with NutryFarm where we will combine our industry capabilities and sales channels to target various consumer segments of the durian market in Singapore. Despite the pandemic, demand for durians in Singapore has remained strong and we look forward to harness the new growth opportunities together,” says Ang Seck Puan.
Shares in NutryFarm closed flat at 32.5 cents on June 10.
Cover photo: Bloomberg
